BLACK PRESS: Moody's Revises Outlook to Stable & Keeps 'B3' CFRCASEY ANTHONY: Buying Back Her Life Story for $25,000CENGAGE LEARNING: May Use Cash Collateral Until July 24CHEMTURA CORP: Extends Expiration Date for Tender Offer to July 19CHRYSLER GROUP: Fiat to Increase Stake in American Automaker

MDU COMMUNICATIONS: To Run Out of Cash by SeptemberMEDIA GENERAL: Moody's Rates New $960MM Debt 'Ba1'METROPOLITAN NATIONAL: Enters Ch. 11 With $16MM RecapitalizationMSR RESORT: Five Mile Seeks Independent TrusteeNESBITT PORTLAND: Has Plan Support Agreement With U.S. Bank

* Fitch Sees Stable Outlook For N. American Thermal Projects* Moody's: Life Insurers' Credit Losses Back to Historical Levels* June Commercial Bankruptcies Fewest Since February 2007* LPS' May Mortgage Monitor Shows Record Drop in Delinquencies

* Local Rules Can't Allow Untimely Filing of Complaint

* Feds Seek 2 Years In Prison For Ex-Kirkland Partner's Fraud* SAC's Cohen Said to Remain Under Investigation

* Morgan Lewis Adds 8 Business & Restructuring Lawyers in Moscow

* Upcoming Meetings, Conferences and Seminars

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1617 WEST CLIFF: To Sell Property Under Ch. 11 Liquidating Plan---------------------------------------------------------------1617 West Cliff, LLC, filed with the U.S. Bankruptcy Court for theCentral District of California - Santa Ana Division, a Chapter 11liquidating plan and a disclosure statement explaining the Plan.

The Debtor, through the Plan, seeks to accomplish payment ofcreditors in full by reorganizing its personal assets andliabilities through the sale of its only substantial asset, acommercial real property commonly known as 1617 Westcliff Drive,in Newport Beach, California. The Property, according to courtdocuments, is a mixed use, Class B building mostly occupied bymedical office space. It comprises 32,000 square feet of rentablespace in a single two-story building situated on approximately1.56 acres of land in an up-scale commercial district of NewportBeach.

The Debtor is negotiating a settlement agreement with a formertenant, which may result in payments to the Estate on account ofpast-due rent: however, as long as Debtor owns the Property, thosepayments will be the cash collateral of Wells Fargo Bank, N.A., asTrustee for the Registered Holders of Credit Suisse First BostonMortgage Securities Corp., Commercial Mortgage Pass-ThroughCertificates, Series 2004- C3, acting by and through its specialservicer, which holds a first-in-priority deed of trust secured bythe Property, and are unlikely to become available fordistribution to creditors.

The Plan proposes two means of paying all creditors in full:

(1) The Debtor will sell the Property, and the sale will closeon or before the effective date of the Plan, allowing Debtor topay all allowed claims in full on the Effective Date. If able toclose the sale on or before the Effective Date, the Debtor intendsto cure on the Effective Date all defaults with respect to theBank's note, thereby eliminating default interest on that claim.The Debtor will pay any pre-payment fee on the Bank's claim whichis triggered by the sale. Under the Plan scenario, no claims willbe impaired.

(2) The Debtor will sell the Property, and the sale will closeafter, but within 18 months of, the Effective Date, allowing theDebtor to pay all allowed claims in full within 18 months of theEffective Date. If the Debtor is unable to close the sale on orbefore the Effective Date, then on the Effective Date the Receiverwill remain in possession of the Property: however, the Receiverwill be required to replace the current Property Manager with anew professional property management entity. As the Debtor willbe unable to pay all allowed claims on the Effective Date in thiscase, all claims will technically be impaired. However, allclaims will still receive payment in full, including interest.Furthermore, because the Debtor will be unable to cure on theEffective Date all defaults with respect to the Bank's note, theBank will be entitled to interest at the default rate on thatclaim. The Bank will only be entitled to any pre-payment fee onthe Bank's claim if the sale closes on or before September 1,2014, which is the maturity date of the loan.

A hearing to consider the adequacy of the Disclosure Statementwill be held on July 24, 2013, at 2:00 p.m.

The Cheng plaintiffs -- who obtained a $5.35 million arbitrationaward against Aelous and two of its shareholders -- retained theKeehn defendants in July 2009 to represent their interests in thebankruptcy proceedings of Aelous. Shui Yan Cheng was a corporatedirector and shareolder of Aelous.

In a June 10, 2013 Order available at http://is.gd/logDArfrom Leagle.com, the Appeals Court held that the trial court properlyruled that the Keehn defendants were a "third party" within themeaning of the statute, even though they had a separatearbitration agreement with the Cheng plaintiffs.

AOI's Speculative Grade Liquidity (SGL) Rating of SGL-4 reflectsthe company's significant debt maturities within the 12 month SGLforecast period which in Moody's view cannot be repaid with cashbalances, free cash flow and committed long term sources ofexternal financing. The near term debt maturities include a $115million convertible note due in July 2014 and the expiration ofits $250 million revolver in April of 2014. To the extent thecompany is able to successfully refinance the convertible note andextend the maturity of its revolver beyond 2014, Moody's wouldview this as a restoration of the company's liquidity profile andwould expect to raise the liquidity rating to SGL-3.

AOI's B3 Corporate Family Rating reflects Moody's expectation thatcredit metrics and free cash flow will remain weak over the next12 to 18 months. AOI's ratings are constrained due to the mature,low margin nature of the leaf tobacco processing business despiteAOI's strong market position, its established relationships withkey tobacco manufacturing customers and its global procurement andprocessing network. While Moody's expects that the competitiveclimate will remain challenging and continue to constrain marginimprovement, these industry characteristics provide significantbarriers to the entry of new large-scale operators and meaningfulvertical integration by AOI's customer base.

AOI's stable outlook reflects Moody's expectation that the pricingenvironment in the tobacco leaf sector will continue to stabilize,competition will not meaningfully increase and self-sourcing bykey customers will not adversely impact operating profitabilityover the next 12 to 18 months. The stable outlook also reflectsMoody's expectation that the company will address its 2014 termdebt maturities well in advance of the maturity dates.

Though unlikely in the near term, AOI's ratings could be upgradedif the company's operating performance improves such that debt-to-EBITDA remains below 6.0 times, EBITA-to-interest expenseapproaches 2.0 times and free cash flow-to-debt is maintained inat least the mid-single digit range.

AOI's ratings could be downgraded if the company's profitabilityor liquidity profile deteriorates or if the company is unable tosuccessfully refinance its 2014 debt maturities well in advance ofthe maturity dates.

The principal methodology used in this rating was the GlobalProtein and Agriculture Industry Methodology published in May2013. Other methodologies used include Loss Given Default forSpeculative-Grade Non-Financial Companies in the U.S., Canada andEMEA published in June 2009.

Headquartered in Morrisville, North Carolina, Alliance OneInternational, Inc. is one of the world's leading tobaccoprocessors and merchants. Its principal products include flue-cured, burley and oriental tobaccos, which are major ingredientsin international and domestic cigarettes. Revenue for the fiscalyear ended March 31, 2013 was approximately $2.2 billion, a 4.3%increase over fiscal 2012.

AMERICAN AIRLINES: To Lease Back Six Boeing 737-823s With Aercap----------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that when AMR Corp. takes delivery of six new Boeing 737823 aircraft, financing will be provided by an affiliate of AerCapHoldings NV, assuming the bankruptcy court approves at a July 25hearing.

According to the report, the aircraft will be delivered betweenNovember and May. The financing will take the form of sales andleasebacks. Having recently completed nine sale and leasebacktransactions, the parent of American Airlines Inc. said it wasfamiliar with the market in selecting AerCap. Compared with loanswhere the airline retains ownership, AMR said leasebacks areadvantageous because they don't entail the risk associated withthe value of the aircraft when the term of the lease expires.

The price of the aircraft and the economic terms of the financingsaren't disclosed publicly, the report relates.

About American Airlines

AMR Corp. and its subsidiaries including American Airlines, thethird largest airline in the United States, filed for bankruptcyprotection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattanon Nov. 29, 2011, after failing to secure cost-cutting laboragreements. AMR, previously the world's largest airline prior tomergers by other airlines, is the last of the so-called U.S.legacy airlines to seek court protection from creditors.

Weil, Gotshal & Manges LLP serves as bankruptcy counsel to theDebtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom LawGroup, Chartered, are on board as special counsel. RothschildInc., is the financial advisor. Garden City Group Inc. is theclaims and notice agent.

AMR and US Airways Group, Inc., on Feb. 14, 2013, announced adefinitive merger agreement under which the companies will combineto create a premier global carrier, which will have an impliedcombined equity value of approximately $11 billion. The deal issubject to clearance by U.S. and foreign regulators and by thebankruptcy judge overseeing AMR's bankruptcy case.

In April 2013, AMR filed a Chapter 11 plan of reorganization thatwill carry out the merger. By distributing stock in the mergedairlines, the plan is designed to pay all creditors in full, withinterest. The hearing before the Court to consider confirmation ofthe Plan is scheduled for Aug. 15, 2013.

According to the report, consummation of the plan last week marksthe second time AMF emerged from bankruptcy reorganization. Thesecond-lien group that bought most of AMF includes affiliates ofCerberus Capital Management LP and JPMorgan Chase & Co., whotogether held 70 percent of the second-lien debt and 11.5 percentof the first-lien notes. The plan paid off the first-lien debt infull with interest at the non-default rate.

About AMF Bowling Worldwide

AMF Bowling Worldwide Inc. is the largest operator of bowlingcenters in the world. The Company and several affiliates soughtChapter 11 protection (Bankr. E.D. Va. Case Nos. 12-36493 to12-36508) on Nov. 12 and 13, 2012, after reaching an agreementwith a majority of its secured first lien lenders and the landlordof a majority of its bowling centers to restructure through afirst lien lender-led debt-for-equity conversion, subject tohigher and better offers through a marketing process. At the timeof the bankruptcy filing, AMF operated 262 bowling centers acrossthe United States and, through its non-Debtor facilities, and 8bowling centers in Mexico -- more than three times the number ofbowling centers of its closest competitor.

Debt for borrowed money totals $296 million, including$216 million on a first-lien term loan and revolving credit,and $80 million on a second-lien term loan.

Mechanicsville, Virginia-based AMF first filed for bankruptcyreorganization in July 2001 and emerged with a confirmedChapter 11 plan in February 2002 by giving unsecured creditors7.5% of the new stock. The bank lenders, owed $625 million,received a combination of cash, 92.5% of the stock, and $150million in new debt. At the time, AMF had over 500 bowlingcenters.

The Official Committee of Unsecured Creditors retained PachulskiStang Ziehl & Jones LLP as its lead counsel; Christian & Barton,LLP as its local counsel; and Mesirow Financial Consulting, LLC asits financial advisors.

The Company amended the registration statement to delay itseffective date until the Company will file a further amendmentwhich specifically states that this registration statement willthereafter become effective in accordance with Section 8(a) of theSecurities Act of 1933, or until the registration statement willbecome effective on that date as the Commission acting pursuant tosaid Section 8(a) may determine.

The Company will not receive any proceeds from the sales of sharesof the Company's common stock by the selling shareholders.

The Company's common stock trades on the Over-the-Counter BulletinBoard under the symbol "ASPU".

Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in1987 as the International School of Information Management. OnSept. 30, 2004, it was acquired by Higher Education ManagementGroup, Inc., and changed its name to Aspen University Inc. OnMay 13, 2011, the Company formed in Colorado a subsidiary, AspenUniversity Marketing, LLC, which is currently inactive. OnMarch 13, 2012, the Company was recapitalized in a reverse merger.

Aspen's mission is to become an institution of choice for adultlearners by offering cost-effective, comprehensive, and relevantonline education. Approximately 88% of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduatedegree programs (Master or Doctorate degree program). Since 1993,the Company has been nationally accredited by the DistanceEducation and Training Council, a national accrediting agencyrecognized by the U.S. Department of Education.

Aspen Group incurred a net loss of $6.01 million in 2012, ascompared with a net loss of $2.13 million in 2011. The Company'sbalance sheet at March 31, 2013, showed $3.19 million in totalassets, $2.70 million in total liabilities, and $490,101 in totalstockholders' equity.

Salberg & Company, P.A., in Boca Raton, Florida, issued a "goingconcern" qualification on the consolidated financial statementsfor the year ended Dec. 31, 2012. The independent auditors notedthat the Company has a net loss allocable to common stockholdersand net cash used in operating activities in 2012 of $6,048,113and $4,403,361, respectively, and has an accumulated deficit of$11,337,104 as of December 31, 2012. These matters raisesubstantial doubt about the Company's ability to continue as agoing concern.

ATP OIL & GAS: Seeks to Raise Cash as It Moves Forward With Sale----------------------------------------------------------------Peg Brickley writing for Dow Jones' DBR Small Cap reports that ATPOil & Gas Corp. says it's still in a cash emergency and needs tosell a production payment for $15 million in order to avoidfalling apart before a projected lender takeover in August.

According to the report, Judge Marvin Isgur, who is presiding overthe Gulf of Mexico drilling operation's Chapter 11 bankruptcy, hasyet to grant final approval on the sale of ATP's most valuableoperations, the Telemark and Clipper projects, to senior lenders.

Meanwhile, Statoil filed with the U.S. Bankruptcy Court anobjection to ATP Oil & Gas' motion for an order approving theDebtors' sale of a hydrocarbon production payment, BankruptcyDatareported.

According to BData, Statoil complains about the "total lack oftransparency" concerning the proposed transaction. Statoil saysthat the proposed transaction is a disguised loan and not sale.

Statoil says that the emergency motion suggests that the Debtorwill receive $15 million. But what is not disclosed is what theBuyer is getting in exchange for this payment. As such, theproposed transaction amounts to a loan where the terms, includingthe interest rate and fees are hidden from view, according toStatoil.

About ATP Oil & Gas

Houston, Tex.-based ATP Oil & Gas Corporation is an internationaloffshore oil and gas development and production company focusedin the Gulf of Mexico, Mediterranean Sea and North Sea.

ATP disclosed assets of $3.6 billion and $3.5 billion ofliabilities as of March 31, 2012. Debt includes $365 million on afirst-lien loan where Credit Suisse AG serves as agent. There is$1.5 billion on second-lien notes with Bank of New York MellonTrust Co. as agent. ATP's other debt includes $35 million onconvertible notes and $23.4 million owing to third parties fortheir shares of production revenue. Trade suppliers have claimsfor $147 million, ATP said in a court filing.

An official committee of unsecured creditors has been appointed inthe case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley &McCloy, in New York, represents the Creditors Committee ascounsel.

A 7-member panel of equity security holders has also beenappointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio,Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counselto the Equity Committee.

ATP is seeking court approval to sell substantially all of itsDeepwater Assets and Shelf Property Assets.

According to the report, Hilco Merchant Resources LLC is to serveas agent conducting the sales and earning a fee of 2 percent. Forsales of furniture, fixtures, and equipment, the fee is 17.5percent. The sales are to end by Aug. 8.

The chain is owned by a father and son who purchased the operationwith a $4 million secured term loan and $24 million revolvingcredit from the seller. The stores are in Florida, Georgia,Alabama and Mississippi.

The petition shows assets and debt both for more than $10 million.C&S Wholesale Grocers Inc. is owed about $6 million on secured andunsecured debt. Belle Foods owes another $8 million to tradesuppliers, according to a court filing.

Concurrently, Moody's assigned B1 ratings to the company's newlyproposed senior secured credit facilities, consisting of a $30million revolver, a $155 million term loan, and up to $160 milliondelayed draw term loan (DDTL).

The proposed term loan and revolver are expected to refinance thecompany's existing senior secured credit facilities, while theDDTL is expected to provide acquisition financing for the purchaseof Overhill Farms at close.

Moody's notes that the DDTL may also be drawn, subject to certainconditions, for the repayment of the company's existing unratedmezzanine notes. If the company repays the mezzanine notes, theratings on the newly proposed credit facilities will be downgradedone notch to B2, in line with the CFR. The downgrade would reflectthe elimination of subordinated debt in the capital structure. Therating outlook is maintained at stable.

The following ratings have been assigned subject to Moody's reviewof final documentation:

Proposed $155 million senior secured term loan due 2019 at B1 (42%, LGD3);

Proposed $160 million senior secured term loan due 2019 at B1 (42%, LGD3).

The following ratings have been affirmed:

B2 Corporate Family Rating; and

B2-PD Probability of Default Rating.

The following ratings will be withdrawn upon completion of thetransaction:

$170 million first lien term loan due 2017 at B1 (42%, LGD3); and

$30 million first lien revolving credit facility due 2016 at B1 (42%, LGD3).

The outlook is maintained at stable

Ratings Rationale:

The B2 Corporate Family Rating reflects Bellisio's relativelysmall scale, moderately high leverage, narrow product focus, andexposure to commodity input prices. However, the rating benefitsfrom the company's relatively stable cash flow generation andwell-established market position in the value segment of thefrozen dinner and entr‚e market. While the company continues tohave a meaningful dependence on its primary manufacturinglocation, this risk is partially mitigated by the presence ofnewly acquired facilities that enhance the company's geographicreach. The rating also incorporates Bellisio's potential formodest organic growth stemming from new licensing arrangements,growth in its co-packing and private label businesses, and furtherexpansion into the premium segment of dinners and entr‚es relatedto the Boston Market brand, which increases penetration beyond thevalue segment. The rating also derives support from Bellisio'sgood liquidity profile, which is bolstered by Moody's expectationfor modest free cash flow generation in the next 12 to 18 months.

The B1 ratings on the company's proposed $155 million term loan,$160 million DDTL (assuming $100 million drawn) and $30 millionrevolving credit facility reflect their first priority lien statuson substantially all assets of the company and upstream guaranteesby all existing and future subsidiaries. The ratings also benefitfrom the expected loss absorption that would be provided by the$60 million mezzanine notes due 2020 (unrated).

The stable outlook reflects Moody's expectation that financialleverage will moderately improve during the next twelve months.While operating margins remain exposed to commodity pricevolatility, Moody's believes Bellisio will continue to focus oncost management efforts and organic growth initiatives to helpoffset the potential impact of any future cost pressures. Thestable outlook also assumes the company will have limitedintegration issues associated with the acquisition of Overhill.

Upward ratings momentum is currently viewed as unlikely prior to asustained reduction in leverage to 3.0 times, given Moody's viewthat the company's rating is limited by its scale and productdiversification relative to other packaged food companies as wellas its private equity ownership.

The ratings could be downgraded if Bellisio's profitabilitymaterially declines, resulting in a debt-to-EBITDA ratio sustainedabove 5.0 times, or if the company's liquidity profiledeteriorates. Potential causes include the tightening of marginsas a result of its inability to pass through large commodity costincreases or significant missteps in integration efforts or inimplementing new product initiatives.

The principal methodology used in this rating was the GlobalPackaged Goods Industry Methodology published in June 2013. Othermethodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEApublished in June 2009.

Bellisio Foods, Inc. produces more than 200 frozen entrees andsnacks in the value segment under the Michelina's brand, includingAuthentico, Traditional, Lean Gourmet and Zap'Ems Gourmet. Thecompany also has a more limited though increasing presence in thepremium frozen entr‚e arena, in large part due to the BostonMarket brand it has been distributing on behalf of Overhill forthe past two years, and full control of which will come throughthe Overhill acquisition. In addition, the company generatesroughly 20% of its revenues from producing co-packed and privatelabel frozen foods. Centre Partners Management, LLC and affiliates(Centre Partners) acquired Bellisio in December 2011. Revenues forthe twelve months ending April 21, 2013 were roughly $370 million.

BIOVEST INTERNATIONAL: Shareholders Appeal Plan Confirmation------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the official Biovest International Inc. shareholders'committee is appealing the confirmation order signed by thebankruptcy judge on June 28 approving the Chapter 11 plan allowinglenders to take ownership either through the plan or from a saleof the assets.

According to the report, U.S. Bankruptcy Judge K. Rodney May inTampa, Florida, turned aside objections from the officialshareholders' committee and from the U.S. Trustee. Judge May saidreleases given to third parties were necessary for implementationof the plan. Biovest is the developer of what is designed to bethe first vaccine for treating lymphoma.

The report relates that either through the plan or a sale, lendersCorps Real LLC and Laurus/Valens Funds are buying the business inexchange for $44 million in debt. The company is developingBiovaxID, a personalized cancer vaccine for some types of non-Hodgkin's lymphoma. Total debt was listed as being $44.9 million,with assets shown in a court filing as valued at $4.7 million.

About Biovest International

Biovest International, Inc. -- http://www.biovest.com/-- is an emerging leader in the field of active personalizedimmunotherapies. In collaboration with the National CancerInstitute, Biovest has developed a patient-specific, cancervaccine, BiovaxID(R), with three clinical trials completed,including a Phase III study, demonstrating evidence of safety andefficacy for the treatment of indolent follicular non-Hodgkin'slymphoma.

Headquartered in Tampa, Florida, with its bio-manufacturingfacility based in Minneapolis, Minnesota, Biovest is publicly-traded on the OTCQB(TM) Market with the stock-ticker symbol"BVTI", and is a majority-owned subsidiary of AccentiaBiopharmaceuticals, Inc. (OTCQB: "ABPI").

Biovest International Inc., filed a petition for Chapter 11reorganization (Bankr. M.D. Fla. Case No. 13-02892) on March 6,2013, in Tampa, Florida. The new bankruptcy case was accompaniedby a proposed reorganization plan supported by secured lendersowed about $38.5 million. Total debt is $44.9 million, withassets listed in a court filing as being valued at $4.7 million.About $5.4 million is owing to unsecured creditors, according to acourt paper.

BLACK PRESS: Moody's Revises Outlook to Stable & Keeps 'B3' CFR---------------------------------------------------------------Moody's Investors Service confirmed Black Press Ltd.'s (BlackPress) B3 corporate family rating and B3-PD probability of defaultrating, affirmed the Ba3 and B1 ratings respectively of therevolving credit facility and first lien US and Canadian termloans of Black Press' subsidiaries, and revised the rating outlookto stable from under review for downgrade. Moody's also assignedstable rating outlooks to Black Press US Partnership and BlackPress Group Ltd. The ratings on Black Press' existing term loansand subordinated notes were withdrawn as they have been repaid.This concludes a review for downgrade initiated on May 6, 2013.

Black Press used net proceeds from its new $148 million first lienterm loans and new $80 million second lien notes (unrated)together with cash on hand to refinance about $136 million ofexisting term loans and $110 million of subordinated notes. Thecompany's new $10 million super priority revolving credit facilitywas undrawn at close.

Moody's changed the rating outlook to stable as the company hasextended its debt maturity profile and improved its liquidityposition with the completion of the refinance transaction.

Ratings Confirmed

Issuer: Black Press Ltd.

Corporate Family Rating, B3

Probability of Default Rating, B3-PD

Ratings Withdrawn:

$132 million senior secured term loans A & B due August 2013, Ba3 (LGD2, 23%), WR

Black Press' B3 CFR reflects high business risk resulting fromsecular industry pressures and vulnerability to cyclicaladvertising spending, and the company's acquisitive growthorientation, which could cause its leverage to increase (adjustedDebt/EBITDA was 4.8x at fiscal yearend 2013). While the Americannewspaper operations have shown some improvement, the Canadiannewspapers and commercial printing operations, which make up morethan 70% and 80% of total revenue and EBITDA respectively, haverecorded weaker results than anticipated, driven by negativesecular trends in the newspaper publishing industry and softeconomic conditions. These trends are expected to continue asprint advertising shifts to digital platforms. The rating benefitsfrom the company's good market position in western Canada,positive free cash flow generation and continued focus on debtreduction. The rating also reflects the company's disciplinearound cost reduction which has helped to maintain adjusted EBITDAmargins around 20%. Also, assets outside the restricted group thatgenerate about $20 million of annual EBITDA add a measure ofdiversity to Black Press' asset base.

An upgrade in Black Press' rating could be considered if thecompany reverses the decline in revenue and sustains adjustedDebt/EBITDA towards 4x and EBITDA - Capex/ Interest above 2x.Black Press' ratings would be downgraded if free cash flowgeneration remains negative for an extended period or ifdeterioration in revenue and earnings should cause adjustedDebt/EBITDA to be sustained above 6x. A material debt-financedacquisition could also lead to a downgrade.

The principal methodology used in this rating was the GlobalPublishing Industry Methodology published in December 2011. Othermethodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEApublished in June 2009.

Black Press Ltd. is a privately-held community newspaper andprinting company headquartered in British Columbia, Canada. Thecompany publishes more than 150 daily and weekly newspapers inBritish Columbia, Alberta, Washington and Ohio. Black Press Ltd.is 80% owned by the David Black family and 20% by TorstarCorporation.

CASEY ANTHONY: Buying Back Her Life Story for $25,000-----------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Casey Marie Anthony, who was acquitted of killing herchild, is paying $25,000 to buy back her life story from thebankruptcy trustee.

According to the report, if approved by the U.S. Bankruptcy Courtin Tampa, Florida, the settlement proposed in a court filing wouldend a precedent-setting dispute over the notion that an individualwho files for bankruptcy loses the ability to profit from his orher life story, even if wasn't committed to writing.

The report notes that in July 2011, Anthony was acquitted ofmurder by a jury in the death of 2-year-old daughter Caylee MarieAnthony. She filed for Chapter 7 bankruptcy in January. Sayinghe received several offers, the bankruptcy trustee filed papers inMarch to set up an auction to sell Anthony's life story. Anindividual named James M. Schober wanted to buy the rights topreclude Anthony from "profiting from her story in the future."

The report relates that the offer didn't require Anthony'scooperation. Anthony's lawyers objected to the sale and arguedthere was no "property" that could be sold. In May, the trusteewithdrew his request for the court to authorize auctionprocedures. On July 3, bankruptcy trustee Stephen Meininger filedpapers asking the bankruptcy judge to approve a settlement whereAnthony will pay $25,000 to end the controversy over whether thebankruptcy court has the power to sell her life story.

The report says that as reason for the settlement, the trusteecited a video where this writer noted the unprecedented nature ofthe dispute and said the issue could be appealed to the court ofappeals, if not all the way to the U.S. Supreme Court. Courtpapers don't say how Anthony is obtaining the $25,000. She hassaid she has neither assets nor income and is being represented inbankruptcy court by lawyers working for free.

The report discloses that creditors have three weeks to object tothe settlement. A hearing will be scheduled if there is anobjection.

About Casey Anthony

Casey Marie Anthony, 26, was acquitted of murder in July 2011 inthe death of her daughter, Caylee. She was released from jailseveral days later and disappeared from the spotlight.

CENGAGE LEARNING: May Use Cash Collateral Until July 24-------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Cengage Learning Inc. secured court approval for anagreement with first-lien lenders allowing use of cashrepresenting collateral for their loans. There will be a finalhearing on July 24 for approval of cash collateral use.

According to the report, the bankruptcy judge in Brooklyn, NewYork, also approved other first-day orders. At the final hearing,the focus may be on $300 million in remaining availability on arevolving credit which the company drew before bankruptcy. Thecompany said it put remaining proceeds of $260 million into anaccount so the funds aren't collateral for senior lenders' claims.

Stamford, Connecticut-based Cengage Learning --http://www.cengage.com/-- provides innovative teaching, learning and research solutions for the academic, professional and librarymarkets worldwide. Cengage Learning's brands includeBrooks/Cole, Course Technology, Delmar, Gale, Heinle, SouthWestern and Wadsworth, among others. Apax Partners LLP boughtCengage in 2007 from Thomson Reuters Corp. in a $7.75 billiontransaction. The acquisition was funded in part with $5.6 billionin new debt financing.

Cengage Learning Inc. filed a petition for Chapter 11reorganization (Bankr. S.D.N.Y. Case No. 13-bk-44106) on July 2,2013, in Brooklyn, New York, after signing an agreement whereholders of $2 billion in first-lien debt agree to support areorganization plan. The plan will eliminate more than $4 billionof $5.8 billion in debt.

CHEMTURA CORP: Extends Expiration Date for Tender Offer to July 19------------------------------------------------------------------Chemtura Corporation on July 8 disclosed that, in connection withits previously announced cash tender offer and consentsolicitation with respect to any and all of its outstanding$455.0 million aggregate principal amount of 7.875% Senior Notesdue 2018, pursuant to the Company's Offer to Purchase and ConsentSolicitation Statement, dated June 10, 2013, it is amending theterms of the tender offer to extend the expiration date for thetender offer from 11:59 p.m., New York City time, on July 8, 2013to 4:00 p.m., New York City time, on July 19, 2013, unless furtherextended or earlier terminated by the Company in its solediscretion, and to eliminate the early settlement feature. Theexpiration date is being extended because the Financing Condition(as defined in the Offer to Purchase) has not yet been satisfied.The consent date, the last date and time for holders to tendertheir Notes in order to receive the total consideration set forthin the Offer to Purchase, expired at 5:00 p.m., New York Citytime, on June 21, 2013 and is not being extended.

Except for the extension of the expiration date and theelimination of the early settlement feature, all terms andconditions of the tender offer set forth in the Offer to Purchaseremain unchanged.

Holders who previously have tendered their Notes do not need tore-tender their Notes or take any other action in response to thisextension. As of 5:00 p.m., New York City time, on July 5, 2013,tenders had been delivered with respect to $348,346,000 aggregateprincipal amount of Notes, representing approximately 76.56% ofthe outstanding aggregate principal amount of Notes. Inaccordance with the terms of the Offer to Purchase, tendered Notesmay no longer be validly withdrawn and related consents may nolonger be validly revoked, unless the tender offer is terminated.

Subject to the terms and conditions set forth in the Offer toPurchase, holders who validly tendered their Notes on or prior tothe Consent Date will receive the total consideration of $1,117.50per $1,000 principal amount of Notes accepted for purchase, whichincludes a consent payment of $30.00 per $1,000 principal amountof Notes.

Holders who validly tender their Notes after the Consent Date buton or prior to 4:00 p.m., New York City time, on July 19, 2013,unless extended or earlier terminated by the Company in its solediscretion (such date and time, as the same may be extended orearlier terminated, the "Expiration Date"), will receive thetender offer consideration of $1,087.50 per $1,000 principalamount of Notes accepted for purchase. Holders of Notes tenderedafter the Consent Date will not receive the consent payment. Notestendered after the Consent Date but on or prior to the ExpirationDate may not be withdrawn, except in the limited circumstancesdescribed in the Offer to Purchase.

Citigroup Global Markets Inc. is acting as the dealer manager andsolicitation agent and D.F. King & Co., Inc. is acting as thetender agent and information agent for the tender offer andconsent solicitation. Requests for documents may be directed toD.F. King & Co., Inc. at (800) 829-6551 (toll-free) or (212) 269-5550 (collect). Questions regarding the tender offer and consentsolicitation may be directed to Citigroup Global Markets Inc. at(800) 558-3745 (toll-free) or (212) 723-6106 (collect).

About Chemtura Corp.

Based in Middlebury, Connecticut, Chemtura Corporation --http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, cropprotection products, and pool, spa and home care products.

Chemtura Corporation and 26 of its U.S. affiliates filed voluntarypetitions for relief under Chapter 11 (Bankr. S.D.N.Y. Case No.09-11233) on March 18, 2009. The Debtors disclosed total assetsof $3.06 billion and total debts of $1.02 billion as of theChapter 11 filing.

M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York,served as bankruptcy counsel for the Debtors. Wolfblock LLP wasthe Debtors' special counsel. The Debtors' auditors andaccountant were KPMG LLP; their investment bankers are LazardFreres & Co.; their strategic communications advisors were JoeleFrank, Wilkinson Brimmer Katcher; their business advisors wereAlvarez & Marsal LLC and Ray Dombrowski served as their chiefrestructuring officer; and their claims and noticing agent wasKurtzman Carson Consultants LLC.

Chemtura completed its financial restructuring and emerged fromprotection under Chapter 11 in November 2010. In connection withthe emergence, reorganized Chemtura is now listed on the New YorkStock Exchange under the ticker "CHMT".

CHRYSLER GROUP: Fiat to Increase Stake in American Automaker------------------------------------------------------------Gillies Castonguay, writing for The Wall Street Journal, reportedthat Italy's Fiat SpA has exercised another option to buy sharesin Chrysler Group LLC even though it has yet to take possession oftwo earlier tranches of shares because of a price dispute.

According to the report, Fiat, which already owns 58.5% ofChrysler, has been exercising options since last year as part of aplan to take over its U.S. partner and create an auto maker bigenough to compete on a global scale.

It has been unable to acquire the shares because it has beenarguing about the price it should pay the U.S. union trust thatowns the remaining 41.5% stake in Chrysler, the report said.

Nevertheless, Fiat said Monday it had exercised an option to buy athird tranche representing about 3.3% of Chrysler's outstandingequity, offering $254.7 million (EUR198.4 million), the reportadded.

The options to buy the batches of shares were part of theconditions secured by Fiat when it agreed four years ago to takeChrysler out of bankruptcy and try to revive it, the report said.

Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter11 protection from creditors (Bankr. S.D.N.Y (Mega-case), LeadCase No. 09-50002). The U.S. and Canadian governments providedChrysler LLC with $4.5 billion to finance its bankruptcy case.

In connection with the bankruptcy filing, Chrysler reached anagreement to sell all assets to an alliance between Chrysler andItalian automobile manufacturer Fiat. Under the terms approved bythe Bankruptcy Court, the company formerly known as Chrysler LLCin June 2009, formally sold substantially all of its assets to thenew company, named Chrysler Group LLC.

* * *

Chrysler has a 'B1' corporate family rating from Moody's. Moody'supgraded the rating from 'B2' to 'B1' in February 2013. In May2013, Standard & Poor's Ratings Services affirmed its ratings,including the 'B+' corporate credit rating, on Chrysler Group. Atthe same time, S&P revised its outlook to positive from stable.

Other Brown Rudnick attorneys or paraprofessionals will from timeto time provide legal services on behalf of the Committee, theirhourly rates are:

Attorney $475 - $1,100 Paraprofessional $265 - $370

To the best of the Committee's knowledge, Brown Rudnick is a"disinterested person" as that term is defined in Section 101(14)of the Bankruptcy Code.

About CODA Holdings

Los Angeles, California-based CODA Energy --http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, whichsold only 100 copies. It was an electrically powered version ofthe Hafei Saibao, made in China. After bankruptcy, Los Angeles-based Coda intends to concentrate on making stationery electric-storage systems.

CODA Holdings, Inc., Coda Energy LLC and three other affiliatesfiled for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No.13-11153) on May 1, 2013, to enable the Company to complete asale, confirm a plan, and emerge from bankruptcy in a strongerposition to execute its new business plan. The Company expectsthe sale process to take 45 days to complete.

FCO MA CODA Holdings LLC, an affiliate of Fortress InvestmentGroup, is leading a consortium of lenders intending to provide DIPfinancing to enable the Company's energy storage business toremain fully operational during the restructuring process. Theconsortium, or its designee, will also as stalking horse bidder toacquire the Company post-bankruptcy. In addition, the Companywill seek to monetize value of its existing automotive businessassets.

CODA disclosed assets of $10 million to $50 million andliabilities of less than $100 million. Coda Automotive Inc.,disclosed $24,950,641 in assets and $95,859,413 in liabilities asof the Chapter 11 filing. The Debtors have incurred prepetition asignificant amount of secured indebtedness: secured notes of withprincipal in the amount of $59.1 million; term loans in theprincipal amount of $12.6 million; and a bridge loan with $665,000outstanding. FCO and other bridge loan lenders have "enhancedpriority" over other secured noteholders that did not participatein the bridge loans, pursuant to the intercreditor agreement.

CODA's legal advisor in connection with the restructuring is White& Case LLP. Emerald Capital Advisors serves as its chiefrestructuring officer and restructuring advisor, and HoulihanLokey serves as its investment banker for the restructuring.Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legaladvisor. Brent T. Robinson, Esq., at Robinson, Anthon & Triberepresents the Debtors in their restructuring efforts.

The Committee tapped Brown Rudnick as its counsel and DeloitteFinancial Advisory Services LLP as its financial advisor.

To the best of the Committee's knowledge, Morris Nichols is a"disinterested person" as that term is defined in Section 101(14)of the Bankruptcy Code.

About CODA Holdings

Los Angeles, California-based CODA Energy --http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, whichsold only 100 copies. It was an electrically powered version ofthe Hafei Saibao, made in China. After bankruptcy, Los Angeles-based Coda intends to concentrate on making stationery electric-storage systems.

CODA Holdings, Inc., Coda Energy LLC and three other affiliatesfiled for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No.13-11153) on May 1, 2013, to enable the Company to complete asale, confirm a plan, and emerge from bankruptcy in a strongerposition to execute its new business plan. The Company expectsthe sale process to take 45 days to complete.

FCO MA CODA Holdings LLC, an affiliate of Fortress InvestmentGroup, is leading a consortium of lenders intending to provide DIPfinancing to enable the Company's energy storage business toremain fully operational during the restructuring process. Theconsortium, or its designee, will also as stalking horse bidder toacquire the Company post-bankruptcy. In addition, the Companywill seek to monetize value of its existing automotive businessassets.

CODA disclosed assets of $10 million to $50 million andliabilities of less than $100 million. Coda Automotive Inc.,disclosed $24,950,641 in assets and $95,859,413 in liabilities asof the Chapter 11 filing. The Debtors have incurred prepetition asignificant amount of secured indebtedness: secured notes of withprincipal in the amount of $59.1 million; term loans in theprincipal amount of $12.6 million; and a bridge loan with $665,000outstanding. FCO and other bridge loan lenders have "enhancedpriority" over other secured noteholders that did not participatein the bridge loans, pursuant to the intercreditor agreement.

CODA's legal advisor in connection with the restructuring is White& Case LLP. Emerald Capital Advisors serves as its chiefrestructuring officer and restructuring advisor, and HoulihanLokey serves as its investment banker for the restructuring.Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legaladvisor. Brent T. Robinson, Esq., at Robinson, Anthon & Triberepresents the Debtors in their restructuring efforts.

The Committee tapped Brown Rudnick as its counsel and DeloitteFinancial Advisory Services LLP as its financial advisor.

a. assist in the evaluation of the asset sale process, including the identification of potential buyers;

b. assist in evaluating the terms, conditions, and impact of any proposed asset sale transactions; and

c. advise the Committee in connection with its negotiations and marketing efforts with other parties relating to the sale of the Debtors' assets.

Deloitte FAS will be compensated at the hourly rate of $350 perhour for professional time across all personnel classifications,plus reasonable expenses incurred in connection with providing theservices.

To the best of the Committee's knowledge, Deloitte FAS is a"disinterested person" as that term is defined in section 101(14)of the Bankruptcy Code.

About CODA Holdings

Los Angeles, California-based CODA Energy --http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, whichsold only 100 copies. It was an electrically powered version ofthe Hafei Saibao, made in China. After bankruptcy, Los Angeles-based Coda intends to concentrate on making stationery electric-storage systems.

CODA Holdings, Inc., Coda Energy LLC and three other affiliatesfiled for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No.13-11153) on May 1, 2013, to enable the Company to complete asale, confirm a plan, and emerge from bankruptcy in a strongerposition to execute its new business plan. The Company expectsthe sale process to take 45 days to complete.

FCO MA CODA Holdings LLC, an affiliate of Fortress InvestmentGroup, is leading a consortium of lenders intending to provide DIPfinancing to enable the Company's energy storage business toremain fully operational during the restructuring process. Theconsortium, or its designee, will also as stalking horse bidder toacquire the Company post-bankruptcy. In addition, the Companywill seek to monetize value of its existing automotive businessassets.

CODA disclosed assets of $10 million to $50 million andliabilities of less than $100 million. Coda Automotive Inc.,disclosed $24,950,641 in assets and $95,859,413 in liabilities asof the Chapter 11 filing. The Debtors have incurred prepetition asignificant amount of secured indebtedness: secured notes of withprincipal in the amount of $59.1 million; term loans in theprincipal amount of $12.6 million; and a bridge loan with $665,000outstanding. FCO and other bridge loan lenders have "enhancedpriority" over other secured noteholders that did not participatein the bridge loans, pursuant to the intercreditor agreement.

CODA's legal advisor in connection with the restructuring is White& Case LLP. Emerald Capital Advisors serves as its chiefrestructuring officer and restructuring advisor, and HoulihanLokey serves as its investment banker for the restructuring.Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legaladvisor. Brent T. Robinson, Esq., at Robinson, Anthon & Triberepresents the Debtors in their restructuring efforts.

The Committee tapped Brown Rudnick as its counsel and DeloitteFinancial Advisory Services LLP as its financial advisor.

CODA HOLDINGS: Microsoft Contracts Not Part of Asset Sale---------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware has entereda supplemental order authorizing CODA Holdings, Inc., et al., tosell substantially all of their non-automotive assets.

According to the Debtor, the limited objections of MicrosoftCorporation and its whole-owned affiliate, Microsoft Licensing, GPwere resolved when the Debtors removed the Microsoft licenses fromthe list of assumed contracts contained in the motions and agreedto include in the sale order certain additional language proposedby Microsoft's counsel and read into record at the sale hearing.

About CODA Holdings

Los Angeles, California-based CODA Energy --http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, whichsold only 100 copies. It was an electrically powered version ofthe Hafei Saibao, made in China. After bankruptcy, Los Angeles-based Coda intends to concentrate on making stationery electric-storage systems.

CODA Holdings, Inc., Coda Energy LLC and three other affiliatesfiled for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No.13-11153) on May 1, 2013, to enable the Company to complete asale, confirm a plan, and emerge from bankruptcy in a strongerposition to execute its new business plan. The Company expectsthe sale process to take 45 days to complete.

FCO MA CODA Holdings LLC, an affiliate of Fortress InvestmentGroup, is leading a consortium of lenders intending to provide DIPfinancing to enable the Company's energy storage business toremain fully operational during the restructuring process. Theconsortium, or its designee, will also as stalking horse bidder toacquire the Company post-bankruptcy. In addition, the Companywill seek to monetize value of its existing automotive businessassets.

CODA disclosed assets of $10 million to $50 million andliabilities of less than $100 million. Coda Automotive Inc.,disclosed $24,950,641 in assets and $95,859,413 in liabilities asof the Chapter 11 filing. The Debtors have incurred prepetition asignificant amount of secured indebtedness: secured notes of withprincipal in the amount of $59.1 million; term loans in theprincipal amount of $12.6 million; and a bridge loan with $665,000outstanding. FCO and other bridge loan lenders have "enhancedpriority" over other secured noteholders that did not participatein the bridge loans, pursuant to the intercreditor agreement.

CODA's legal advisor in connection with the restructuring is White& Case LLP. Emerald Capital Advisors serves as its chiefrestructuring officer and restructuring advisor, and HoulihanLokey serves as its investment banker for the restructuring.Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legaladvisor. Brent T. Robinson, Esq., at Robinson, Anthon & Triberepresents the Debtors in their restructuring efforts.

The Committee tapped Brown Rudnick as its counsel and DeloitteFinancial Advisory Services LLP as its financial advisor.

DELTA PRODUCE: PACA Creditors to Appeal Bid for Attorneys Fees--------------------------------------------------------------Senior District Judge David Alan Ezra granted a Motion for Leaveto Appeal the Bankruptcy Court's November 8, 2012 Order Grantingin Part and Denying in Part PACA Creditor's Applications forAttorneys' Fees, filed in the Chapter 11 cases of Delta Produce LPand Superior Tomato-Avocado, Ltd.

Soon thereafter, the R&J Group filed a response in opposition toMr. Jensen's objections.

On Nov. 2, 2012, the Bankruptcy Court held a hearing on the PACAtrust creditors' claims for attorneys' fees. The Bankruptcy Courtruled from the bench that PACA trust creditors are "unsecuredcreditors" under the Bankruptcy Code and therefore not entitled topost-petition attorneys' fees. The Bankruptcy Court entered awritten order to that effect on Nov. 8, 2012.

On Dec. 7, 2012, the R&J Group filed the Motion for Leave toAppeal, arguing that the Bankruptcy Court erred in denying theirclaims for attorneys' fees. No opposition to the motion was filedby any party.

The R&J Group seeks a determination whether a contractual claimfor attorneys' fees and prejudgment interest is recoverable aspart of a PACA trust claim in the bankruptcy context.

In granting the Group's request, the District Court said the issueon appeal is a question of "pure" law that depends on thestatutory interpretation of the language "full payment of the sumsowing in connection with [perishable agricultural commodities]transactions" within 7 U.S.C. Sec. 499e(c)(2). Moreover, becausethe issue on appeal determines the amount of trust assets to whichPACA trust creditors with contractual claims to attorneys' feesare legally entitled, it will have precedential value for a largenumber of cases.

According to Judge Ezra, "The R&J Group's right to attorneys' feesunder the PACA will have an important impact on the underlyingbankruptcy proceedings of Delta Produce, LP and Superior Tomato-Avocado, Ltd. . . . [T]he PACA requires produce dealers tomaintain proceeds from produce sales in floating trusts so that,if the dealer becomes insolvent, the produce sellers may claim apro-rata share of the trust funds before other creditors. SeeBocchi Americas Assocs., 515 F.3d at 388. The PACA trust fundswill be distributed to qualified trust claimants prior to anultimate discharge of the bankruptcy proceedings. Therefore, ifthose PACA trust creditors contractually entitled to attorneys'fees are not permitted to collect those fees, other PACA trustcreditors may receive a larger pro-rata share of the trust fundsthan appropriate. Resolution of the issue on appeal will advancethe underlying bankruptcy litigation by preventing the R&J Group(and others similarly situated) from receiving less than theirfair share of the PACA trust res. Additionally, even if the R&JGroup appealed the matter of attorneys' fees after the finalbankruptcy discharge, the group argues that it would be 'costprohibitive' to litigate recovery of attorneys' fees from thosePACA trust creditors who received an unduly large portion of thetrust res. This Court agrees. Permitting an appeal on the discreteissue of attorneys' fees will prevent the inequitable distributionof the PACA trust assets and will save the parties theconsiderable expense of litigating the matter after the finalbankruptcy discharge."

DETROIT, MI: Sues Insurer Syncora Over Casino Revenue-----------------------------------------------------The City of Detroit said in a press release dated July 5, 2013,that it filed suit in Wayne County Circuit Court against SyncoraGuarantee Inc. to recover up to $11 million a month in casinorevenues that the City believes are being improperly withheld dueto Syncora's conduct. This threatens the City's ongoingrestructuring efforts.

At a hearing on July 5, Wayne County Circuit Court Judge AnnetteBerry granted the city's request for a temporary restraining orderand enjoined US Bank from refusing to make payments to the city.Berry also set a hearing for 9 a.m. July 26 before Judge JeanneStempien where Syncora must show cause why further preliminaryinjunction should be granted.

At issue are the actions by Syncora, a monoline insurer, to keepDetroit from receiving revenue collected from the City's threecasinos.

In 2009, the City pledged a specific revenue stream -- paymentfrom the developers of the City's casinos and taxes upon eachcasino's gross receipts -- as collateral to secure the City'sobligations on certain hedging agreements. Syncora insured thesehedge agreements, which are often called swap agreements. Syncoraalso insured certain of the $1.4 billion in certificates ofparticipation that were issued to shore up the underfunding in theCity's two public employee pension funds in 2005 and 2006.

The swap agreements serve as hedges for the interest rate payableon certain of the COPs, but are separate independent contracts,that unlike the COPs are supported by a pledge of the City'scasino revenues. Under that pledge, the casino revenues are paidto a custodian, and upon payment of amounts due under the swapagreements, the custodian releases the casino revenues to theCity.

On June 17, 2013, in furtherance of the restructuring of Detroit'sobligations, there was a payment default on the COPs, includingCOPs insured by Syncora. Holders of the COPs insured by Syncoracollected amounts due from Syncora. In contrast, there are nopayment defaults on the swap agreements that are insured bySyncora. Yet shortly after COPs holders were paid by Syncora asthe insurer, Syncora took action against the casino revenuessupporting the swap agreements, directing the custodian to trapthe casino revenues and deprive the City of this critical fundingsource.

"Syncora is exerting power it does not have to get money to whichit has no legal claim, and its actions are putting the City'sentire restructuring efforts in peril," said Detroit EmergencyManager Kevyn Orr.

The City is asking a Michigan court to prohibit Syncora and otherdefendants from taking any action that limits the City's abilityto access the casino revenue. The lawsuit also seeks damagesassociated with Syncora's interference with the City's access tothe casino revenue.

Orr said the casino revenue Syncora is holding up each month isenough to pay for two month's worth of salaries for Detroitfirefighters or keep City police on the streets for 30 days.

Syncora's repeated demands to trap the casino revenues came in themidst of ongoing negotiations between the City and the swapcounterparties, UBS A.G. and Merrill Lynch Capital Services, Inc.to restructure nearly $340 million in secured debt and free upapproximately $11 million in monthly casino revenues to reinvestin essential services for the City's 700,000 residents. Syncora'sactions have brought these negotiations to a virtual standstill.

A settlement with UBS and Merrill would ensure that the City hasmuch needed revenue to fund its operations, enable a negotiatedsettlement with UBS and Merrill to exit the swaps with no effecton Syncora and allow the City to avoid a termination payment ofseveral hundreds of millions of dollars.

There are no payment defaults under the swap agreements andDetroit is currently in full compliance with its paymentobligations under the collateral agreement.

Syncora's effort to trap Detroit's casino revenues is a deliberateattempt to push Detroit onto the horns of a dilemma -- eitheroffer concessions to Syncora on the COPs that it insures or risk a$340 million termination payment.

The casino revenues were pledged in 2009 to avoid this same risk.As the U.S. economy worsened in 2009, and tax revenues fellprecipitously, Detroit faced a looming $340 million terminationpayment to several banks. To prevent the balloon payment, the Cityagreed to use casino tax and development revenues as collateralfor the swap counterparties. The City was negotiating with theswap counterparties to resolve the swaps claims and free up thecasino revenues when Syncora disrupted that revenue stream withits unfounded trapping demands. Syncora is seeking to advantageits unsecured position on the COPs to obtain preferentialtreatment over the City's other unsecured debt and legacyobligations.

On June 14, the City announced it would not be making its $40million COPs payment because it was conserving cash to fundessential City services. At the same time the City released itsproposal to restructure its almost $15 billion in debt and legacyobligations, which proposed limited recoveries for unsecuredobligations like the COPs, but full payment for obligationssecured by a specific revenue stream, like the swap agreements andthe casino revenues.

"We are taking this action because we will leave no stone unturnedto put Detroit back on its feet financially," said Orr. "Theurgent needs of Detroit's 700,000 residents and the future of theCity should not be held hostage by Syncora or any other party thatinsists on obstructing our efforts unnecessarily."

DUNLAP OIL: Court Denies Pineda's Motion to Vacate Plan Hearing---------------------------------------------------------------In mid-June the U.S. Bankruptcy Court for the District of Arizonadenied, for the reasons set forth on the record at the hearingconducted on June 12, the motion of Pineda Grantor Trust II, asecured creditor, to: (a) determine that the Amendment to DunlapOil Company, Inc., and Quail Hollow Inn, LLC's joint Chapter 11Plan, filed June 4, 2013, is material and requires the approval ofa new disclosure statement; (b) vacate the confirmation hearingset for June 12; and (c) confirm that the June 12 hearing willproceed as a final evidentiary hearing with respect to Pineda'sand Canyon Community Bank's stay relief motions.

As reported in the TCR on June 19, 2013, under the proposedamendment, Debtors would retain the Quail Hollow Inn hotel andanother property, that were initially proposed to be surrenderedto Pineda in exchange for a "fair market value" credit againstPineda's secured claim. The amendment, Pineda argued, is amaterial plan modification requiring approval of a new disclosurestatement, citing In re Downtown Inv. Club III, 89 B.R. 59, 65(B.A.P. 9th Cir. 1988).

Pineda additionally argued that secured creditors who have madethe determination to elect or to forego their election to betreated as fully secured under Section 1111(b) of the BankruptcyCode must be given the opportunity to change their election if theplan is materially modified. Consequently, the Court shouldvacate the hearing on plan confirmation, Pineda asserted.

Judge Brenda Moody Whinery presides over the case. John R.Clemency, Esq., and Lindsi M. Weber, Esq., at Gallagher & Kennedy,P.A., serve as the Debtors' counsel. Peritus Commercial FinanceLLC serves as financial advisor. Quail Hollow Inn also hiredSally M. Darcy of McEvoy Daniels & Darcy P.C. for the limitedpurpose of handling any claims, issues, and/or disputes betweenQHI and Best Western International, Inc. The Debtors' leadcounsel, Gallagher & Kennedy, P.A., has a conflict precluding itsrepresentation of the Debtor in matters relating to Best Western.

QOH declared assets of at least $1 million and debts exceeding$10 million. DOC estimated assets and debts of $10 million to$50 million.

The petitions were signed by Theodore Dunlap, president.

Ilene J. Lashinsky, the U.S. Trustee for Region 14, has appointedthree creditors to serve on an Official Committee of UnsecuredCreditor for the Chapter 11 bankruptcy case of Dunlap Oil Company.The Committee tapped Nussbaum Gillis & Dinner, P.C. as itscounsel.

EASTMAN KODAK: Files Rule 2015.3 Report as of March 31------------------------------------------------------Eastman Kodak Co. and its affiliated debtors filed a report as ofMarch 31, 2013 on the value, operations and profitability of thoseentities in which the estate holds a substantial or controllinginterest.

The report contains a valuation estimate for non-debtor entitiesas of a date not more than two years prior to June 21, 2012, and adescription of the valuation method used.

The report also contains a balance sheet and other financialstatements including a statement of changes in shareholders' orpartners' equity for the period covered for each non-debtorentity, and a list of all active entities of the company.

Rochester, New York-based Eastman Kodak Company and its U.S.subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.Subsidiaries outside of the U.S. were not included in the filingand are expected to continue to operate as usual.

Kodak, founded in 1880 by George Eastman, was once the world'sleading producer of film and cameras. Kodak sought bankruptcyprotection amid near-term liquidity issues brought about bysteeper-than-expected declines in Kodak's historically profitabletraditional businesses, and cash flow from the licensing and saleof intellectual property being delayed due to litigation tacticsemployed by a small number of infringing technology companieswith strong balance sheets and an awareness of Kodak's liquiditychallenges.

In recent years, Kodak has been working to transform itself froma business primarily based on film and consumer photography to asmaller business with a digital growth strategy focused on thecommercialization of proprietary digital imaging and printingtechnologies. Kodak has 8,900 patent and trademark registrationsand applications in the United States, as well as 13,100 foreignpatents and trademark registrations or pending registration inroughly 160 countries.

Kodak completed the $527 million sale of digital-imagingtechnology on Feb. 1, 2013. Kodak intends to reorganize byfocusing on the commercial printing business.

At the end of April 2013, Kodak filed a proposed reorganizationplan offering 85 percent of the stock to holders of the remaining$375 million in second-lien notes. The other 15 percent is forunsecured creditors with $2.7 billion in claims and retirees whohave a $635 million claim from the loss of retirement benefits.

EXCEL MARITIME: Secures Interim Cash Collateral Use---------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Excel Maritime Carriers Ltd., the ship owner thatfiled for Chapter 11 reorganization on July 1, received approvalfrom the bankruptcy court two days later for the usual panoply ofso called first-day orders.

According to the report, U.S. Bankruptcy Judge Robert Drain inWhite Plains, New York, gave Excel authority to use cashrepresenting collateral for secured lenders with liens on the 38dry-bulk vessels. The final hearing on cash use will take placeAug. 5. Drain approved an interim loan of $330,000 for the ownersof two vessels. The final financing hearing was also set forAug. 5. There will be an auction on July 26 to see if there's abetter offer for two other vessels Excel is selling.

The report notes that unless there is a satisfactory cash offer,secured lenders will acquire the vessels in exchange for the $43million in debt they have on the vessels. Rather than take titlethemselves, the lenders will transfer control of the vessels to acompany owned by the daughter of the company's owner GabrielPanayotides. The loans will be restructured under her ownership.Other bids for the vessels are due July 24. The sale approvalhearing will be another agenda item on Aug. 5.

The report relates that unless other creditors throw up anobstacle, there is the outline for a plan supported by seniorlenders owed $771 million. An ad hoc group of certain holders ofthe $150 million in 1.875 percent convertible senior notes alreadyserved notice that the plan is "inappropriate and unconfirmable."They don't like how Mr. Panayotides would have the exclusive rightto "buy back" the company while giving a "nominal distribution" tounsecured creditors.

About Excel Maritime

Based in Athens, Greece, Excel Maritime Carriers Ltd. --http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportationservices for dry bulk cargoes, such as iron ore, coal and grains,as well as bauxite, fertilizers and steel products. Excel owns afleet of 40 vessels and, together with 7 Panamax vessels underbareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax,21 Panamax, 2 Supramax and 5 Handymax vessels) with a totalcarrying capacity of approximately 3.9 million DWT. Excel Class Acommon shares have been listed since Sept. 15, 2005, on the NewYork Stock Exchange (NYSE) under the symbol EXM and, prior to thatdate, were listed on the American Stock Exchange (AMEX) since1998.

The company blamed financial problems on low charter rates.

The balance sheet for December 2011 had assets of $2.72 billionand liabilities totaling $1.16 billion. Excel owes $771 millionto secured lenders with liens on almost all assets. There is $150million owing on 1.875 percent unsecured convertible notes.

Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. CaseNo. 13-bk- 23060) on July 1, 2013, in New York after signing anagreement where secured lenders owed $771 million support areorganization plan filed alongside the petition.

Perry Capital, which seeks to represent investment funds in thelitigation, said it wants to stop the U.S. Treasury from enforcinga so-called third amendment to preferred stock purchaseagreements, according to papers filed in federal court inWashington, the report related.

The report further related that Perry Capital and hedge fundsincluding Paulson & Co. have been lobbying Congress to considerallowing Fannie Mae and Freddie Mac to become independent again.Republican and Democratic lawmakers, and President Barack Obama,have called for both mortgage finance companies to be liquidated,with the U.S. Treasury forecasting to collect more than $200billion of profit from the agencies over the next decade.

"The third amendment fundamentally and unfairly alters thestructure and nature of the securities Treasury purchased,"according to the statement of claim, the report cited. "Thisblatant overreach by the federal government to seize all of thecompanies' profits at the expense of the companies and all oftheir private investors is unlawful and must be stopped."

Fannie Mae and Freddie Mac paid fixed dividends of 10 percent onthe government's stake until this year, when Treasury amended theterms of the bailout and began taking all of Fannie Mae andFreddie Mac's quarterly profits instead, the report said.

The Federal Housing Finance Agency, conservator for Fannie Mae andFreddie Mac, which is also named in the lawsuit, didn'timmediately respond to an e-mailed request for comment sent afterregular business hours, the report added. The U.S. TreasuryDepartment also didn't immediately respond to e-mails seekingcomment.

FIELD FAMILY: Plan to Pay Off Creditors Over Time-------------------------------------------------There's a hearing Aug. 7, 2013, at 10:00 a.m., to considerapproval of the disclosure statement explaining Field FamilyAssociates, LLC's Chapter 11 Plan of Reorganization. Objectionsto the approval of the disclosure statement must be filed by July26, 2013.

The Plan, which was filed on June 27, 2013, contemplates thereorganization of the Debtor and the satisfaction of alloutstanding Claims against the Debtor over time.

The Plan will be funded from cash on hand, cash from futureoperations, and a loan in the approximate amount of $2 millionfrom LaGuardia Express LLC, an affiliate of the Debtor. AllClaims will be satisfied by cash payments or the issuance of cashflow notes to be issued by the Debtor. Existing LLC interests inthe Debtor will be preserved in the Reorganized Debtor.Pursuant to the Plan:

-- Holders of priority tax claims estimated at $452,069 (Class1), secured tax claims estimated at $111,796 (Class 2), andgeneral unsecured claims estimated at $809,253 (Class 5 willreceive the same treatment. They will receive amortized quarterlypayments equal to their allowed claims over a four-year periodwith interest at the rate of 1% per annum, with the firm paymentmade on the Effective Date.

-- Wells Fargo, as trustee (Class 3), which has an estimatedclaim of $31,328,991 (claim of $39,501,576 less $8,172,584defeasance fee of $8,172,587), will receive a: (i) a restructuringfee of 0.5 percent of the principal amount of $30,930,650, (ii)interest-only payments from the Effective Date to the date whichis 18 months after the Effective Date, which will accrue at afixed rate of 5.5% per annum, (iii) at the option of the Debtor,full by payment in cash on the Effective Date of (i) principal inthe amount of $30,930,650; (ii) accrued and unpaid interest owedon the Note at the default rate provided in the Note through theEffective Date; and (iii) any amounts for late fees, attorney'sfees, and other reasonable fees. The Debtor believes that the Planwill be acceptable to Wells Fargo.

-- Holders of "affiliate unsecured claims" (Class 6) willreceive, on the Effective Date, a cash flow note which will accrueinterest at 1% per annum but provide for no payments from theDebtor until the repayment in full of all amounts due to all ofthe Debtor's other creditors holding claims on the Effective Date.

Five creditors filed an involuntary Chapter 11 bankruptcy petitionagainst King of Prussia, Pa.-based Field Family Associates, LLC(Bankr. E.D. Pa. Case No. 12-16331) on July 2, 2012. On Sept. 6,2012, a sixth creditor filed a Joinder in the involuntary Chapter11 Petition. The Court entered an order for relief on Sept. 12,2012. The Debtor owns and operates a 216-room hotel located at144-10 135th Steet, in Jamaica, New York.

FIELD FAMILY: May Use Cash Collateral Thru Sept. 23---------------------------------------------------Stephen Raslavich of the U.S. Bankruptcy Court for theEastern District of Pennsylvania entered a sixth interim orderallowing Field Family Associates, LLC, access to its cashcollateral through the week of Sept. 23, 2013.

The Debtor may use the cash collateral only up to the limits setforth in an approved budget, a copy of which is available at:

As adequate protection, Wells Fargo Bank, N.A., is granted valid,perfected liens and enforceable post-petition replacement securityinterests in all property of the Debtor.

The Court will convene a final hearing on Sept. 25, 2013, at 1:30p.m., on the Debtor's use of cash collateral. Parties-in-interestmay file objections no later than Sept. 19.

About Field Family

Five creditors filed an involuntary Chapter 11 bankruptcy petitionagainst King of Prussia, Pa.-based Field Family Associates, LLC(Bankr. E.D. Pa. Case No. 12-16331) on July 2, 2012. On Sept. 6,2012, a sixth creditor filed a Joinder in the involuntary Chapter11 Petition. The Court entered an order for relief on Sept. 12,2012. The Debtor owns and operates a 216-room hotel located at144-10 135th Steet, in Jamaica, New York.

FOURTH QUARTER: Court to Consider Exclusivity Extension on Aug. 6-----------------------------------------------------------------Fourth Quarter Properties XXXVIII, LLC, asks the U.S. BankruptcyCourt for the Northern District of Georgia to extend its exclusiveperiods to file and solicit acceptances of a plan for 60 days,through and including Sept. 3, 2013, and Nov. 2, 2013,respectively.

The Court has scheduled a hearing on the motion for Aug. 6, 2013,at 10:00 a.m.

The Debtor says it needs additional time to formulate andnegotiate a plan, and prepare the required information. Accordingto the Debtor, the extension of the exclusive periods will permitit to propose a plan of reorganization that will provide forpayment in full of all allowed claims.

According to the Debtor, a key unresolved issue exists. TheDebtor's secured lenders assert that there is no equity in theDebtor's real property, which the Debtor disputes. The Debtorexpects that its commissioned appraisal will be ready before theAug. 6, 2013 hearing on the secured lenders' motion to dismiss orfor relief of stay. The Debtor relates that this contingencyweights heavily toward an extension of the exclusive periods inthis case because its resolution will establish the extent towhich the claims of Cornerstone Commercial Mortgages, LLC, andCharterBank are secured under section 506, and thus the respectivetreatment to which they are entitled in a plan.

Cornerstone asserts a claim in this case of $5,499,687.06.CharterBank asserts a claim in this case of $511,021.76. Bothassert that their claims are secured by the Debtor's owned realproperty and associated rents.

The motion was filed by Austin E. Carter, Esq., at Stone & Baxter,LLP, counsel for the Debtor.

About Fourth Quarter Properties

Fourth Quarter Properties XXXVIII, LLC, filed a Chapter 11petition (Bankr. N.D. Ga. Case No. 13-10585) in Newnan, Georgia,on March 5, 2013. The Debtor is a single asset real estate debtoras defined in 11 U.S.C. Sec. 101(51B) and has property in 45, 47& 59 Ansley Drive, in Newnan. The Debtor estimated at least$10 million in assets and at least $1 million in liabilities as ofthe Chapter 11 filing.

Matthew Cathey, Esq., at Stone & Baxter, LLP, in Macon, Georgia,serves as the Debtor's counsel. According to the docket, theChapter 11 plan and disclosure statement are due July 3, 2013.

Perry Capital, which seeks to represent investment funds in thelitigation, said it wants to stop the U.S. Treasury from enforcinga so-called third amendment to preferred stock purchaseagreements, according to papers filed in federal court inWashington, the report related.

The report further related that Perry Capital and hedge fundsincluding Paulson & Co. have been lobbying Congress to considerallowing Fannie Mae and Freddie Mac to become independent again.Republican and Democratic lawmakers, and President Barack Obama,have called for both mortgage finance companies to be liquidated,with the U.S. Treasury forecasting to collect more than $200billion of profit from the agencies over the next decade.

"The third amendment fundamentally and unfairly alters thestructure and nature of the securities Treasury purchased,"according to the statement of claim, the report cited. "Thisblatant overreach by the federal government to seize all of thecompanies' profits at the expense of the companies and all oftheir private investors is unlawful and must be stopped."

Fannie Mae and Freddie Mac paid fixed dividends of 10 percent onthe government's stake until this year, when Treasury amended theterms of the bailout and began taking all of Fannie Mae andFreddie Mac's quarterly profits instead, the report said.

The Federal Housing Finance Agency, conservator for Fannie Mae andFreddie Mac, which is also named in the lawsuit, didn'timmediately respond to an e-mailed request for comment sent afterregular business hours, the report added. The U.S. TreasuryDepartment also didn't immediately respond to e-mails seekingcomment.

HOKU CORPORATION: Goes Dark, Declares Bankruptcy------------------------------------------------George Prentice, writing for Boise Weekly, reported that HokuCorporation, which promised to become one of Eastern Idaho'slargest employers with a proposed $700 million plant in Pocatello,has gone bankrupt.

According to the report, in May 2012, Hoku halted construction ofits Pocatello facility and laid off 100 employees after strugglingto even pay its electric bill to Idaho Power. The CEO of HokuSolar tendered his resignation shortly thereafter.

And now, Hoku has filed for bankruptcy in Pocatello federal court,reporting nearly $1 billion in red ink, the report said. The planthas been shuttered and no one is allowed on the site unlessauthorized by a bankruptcy trustee, according to the Idaho StateJournal.

More than 30 separate entities have been listed at creditors, thereport noted. A meeting between the creditors and the bankruptcytrustee, R. Sam Hopkins of Pocatello, is slated for Wednesday,July 31.

The official committee of unsecured creditors selected New Yorklaw firm Kramer Levin Naftalis & Frankel LLP as its counsel. TomMayer and Ken Eckstein head the legal team for the committee.

Hostess Brands in mid-November 2012 opted to pursue the orderlywind down of its business and sale of its assets after the Bakery,Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced anationwide strike. The Debtor failed to reach an agreement withBCTGM on contract changes.

Hostess Brands sold its businesses and most of the plants to fivedifferent buyers for an aggregate of $860 million. Hostess stillhas some plants, depots and other facilities the buyers didn'tacquire.

The bankruptcy estate has changed its name to Old HB Inc.

HOSTESS BRANDS: Slimmed Down Twinkies Set to Return---------------------------------------------------Julie Jargon writing for Dow Jones' DBR Small Cap reports that asmore than 50 million Twinkies start making their way to storesJuly 15, the first order of business for the 83-year-old brand'snew owner is to let customers know a classic is back.

According to the report, but behind the return of the familiarcream-filled sponge cake is a leaner operation, free of the unionlabor and the $1.3 billion in debt that saddled the brand'sprevious owners. With that clean slate, the new owner and chiefexecutive, C. Dean Metropoulos , plans to launch into an ambitiousgrowth plan and avoid the problems that led to two Chapter 11bankruptcies, the last of which ended in liquidation.

The official committee of unsecured creditors selected New Yorklaw firm Kramer Levin Naftalis & Frankel LLP as its counsel. TomMayer and Ken Eckstein head the legal team for the committee.

Hostess Brands in mid-November 2012 opted to pursue the orderlywind down of its business and sale of its assets after the Bakery,Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced anationwide strike. The Debtor failed to reach an agreement withBCTGM on contract changes.

Hostess Brands sold its businesses and most of the plants to fivedifferent buyers for an aggregate of $860 million. Hostess stillhas some plants, depots and other facilities the buyers didn'tacquire.

The bankruptcy estate has changed its name to Old HB Inc.

IGPS COMPANY: Has Final OK to Obtain $12-Mil. in DIP Financing--------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware early thismonth authorized iGPS Company, LLC, on a final basis, to obtain upto $12,000,000 in postpetition financing from Crystal FinancialLLC, which may be used for funding the Debtor's day-to-dayoperations and working capital needs.

The DIP Lender will be granted first priority, priming liens,subject only to the Carve Out (for allowed administrativeexpenses, professional fees and expenses for Case Professionalsand the Committee Expenses) and the "permitted prior liens", uponsubstantially all of the Debtor's real and personal property.

The Debtor is also authorized to use cash collateral in which theprepetition lender asserts an interest. As adequate protectionfor its interest in the collateral, iGPS Logistisc LLC, theprepetition lender, will receive additional and replacementsecurity interests and liens. The prepetition lender will havethe absolute right to credit bid, in full or in part, the amountof its secured claim in connection with the sale of any of theDebtor's assets occurring pursuant to section 363 of theBankruptcy Code or included as part of any plan of reorganization.

On June 27, 2013, the Official Committee of Unsecured Creditors ofthe Debtor filed its objection to the DIP Motion, citing:

1. There has been no showing that the grants of adequateprotection to the prepetition lender were required by the DIPLender and the amounts to be borrowed under the DIP Facility wouldhave been financed by the prepetition lender in order to operatethe business.

2. The Interim DIP Order appears to grant the DIP Lendercertain liens and claims with respect to any of the Debtors'claims or causes of action under Chapter 5 of the Bankruptcy Code.

3. The Committee should be granted standing in any final DIPOrder to assert a lien challenge.

4. The current objection deadlines to the liens and claims ofthe Prepetition Lenders should be extended.

5. The deadlines for contesting events of default should beextended.

6. The Court should not approve a patently insufficient budgetand carve out.

7. The waiver of marshaling rights should be stricken from anyFinal DIP Order.

8. The proposed waiver of the Debtors' and estates' rightsunder Section 506(c) of the Bankruptcy Code (to surcharge the DIPLender's collateral and the prepetition lender's collateral forcosts and expenses of administration except as provided for in theDIP Budget) is unfair and prejudicial to Unsecured Creditors.

The objection was filed on behalf of the Committee by J. KateStickles, Esq., Therese A. Scheur, Esq., at Cole, Schotz, Meisel,Forman & Leonard, P.A., lead counsel for the Committee; and GaryW. Marsh, Esq., Henry F. Sewell, Esq., and Alison Elko Franklin,Esq., at MLA, Delaware counsel for the Committee.

iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. Itoffers plastic pallets with embedded radio frequencyidentification (RFID) tags. Founded in 2006, the company isheadquartered in Orlando, Florida, and has a sales and innovationcenter in Bentonville, Arkansas.

The Debtor estimated $100 million to $500 million in assets andliabilities in its Chapter 11 petition.

The bankruptcy judge signed an order on June 7 giving interimapproval for a $6 million loan from Crystal Financial LLC. Thefinal hearing for approval of the entire $12 million loan packagewill take place July 1.

IGPS CO: Pallet Business Scheduled for July 16 Auction------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that IGPS Co. LLC will sell the business of leasingplastic pallets at an auction on July 16. The sale is takingplace about two weeks later than the company originally soughtwhen filing for Chapter 11 protection on June 4.

According to the report, Balmoral Funds LLC, One Equity PartnersLLC, and Jeff and Robert Liebesman are already under contract tobuy the business in exchange for $36 million in secured debt, $1million cash, and assumption of the loan financing bankruptcy.Just before bankruptcy, they purchased the $250 million working-capital loan on which $148.8 million is outstanding, according tocourt filings. Under sale procedures approved on July 3 by theU.S. Bankruptcy Court in Delaware, competing bids are due July 15.There will be a hearing to approve the sale on July 19.

The report relates that the official creditors' committee and theU.S. Trustee failed in their efforts at slowing down the auction.The committee was concerned that without a higher offer generatedfrom additional marketing the sale to the stalking horse buyerswon't generate a recovery for unsecured creditors.

iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. Itoffers plastic pallets with embedded radio frequencyidentification (RFID) tags. Founded in 2006, the company isheadquartered in Orlando, Florida, and has a sales and innovationcenter in Bentonville, Arkansas.

The Debtor estimated $100 million to $500 million in assets andliabilities in its Chapter 11 petition.

ING U.S.'s ratings reflect the company's adequate statutorycapitalization of the aggregate U.S. insurance operationsincluding captives, large scale and solid business profile inretirement and individual life markets, and improving operatingearnings performance within the core businesses. ING U.S. has alsoimproved the credit quality of its investment portfolio throughreduced exposure to commercial mortgage backed securities (CMBS),subprime residential mortgage backed securities and alternativeinvestments.

Through the first three months of 2013, ING U.S. reported pre-taxoperating income from its ongoing businesses of $285 million, up8% from the same period in 2012. Fitch believes that managementhas made good progress reducing the risk profile of currentproduct offerings and mitigating capital and earnings volatilityrelated to its closed block variable annuity businesses withincreased hedging and the write-down of deferred acquisitioncosts.

The estimated consolidated RBC ratio of the company's U.S.insurance subsidiaries was 556% at March 31, 2013, up from 526% atyear-end 2012. Prior to ING U.S.'s IPO, $1.4 billion ofextraordinary dividends were paid from the insurance subsidiariesto the holding company, reducing the RBC ratio as of March 31,2013 to 459%. Fitch expects reported RBC to remain in the 425% -450% range over the intermediate term driven by improved statutoryoperating performance offset by distributions to the holdingcompany.

Fitch views the company's debt servicing capacity as modest, butimproving. As an independent company, ING U.S. will largely dependon dividend payments from regulated and non-regulated operatingsubsidiaries as well as cash at the holding company to meetinterest payments and other obligations. Historically, thecompany's U.S. insurance subsidiaries have had limited or nocapacity to make ordinary dividend payments to the parent due tonegative earned surplus in some statutory subsidiaries and limitedpositive earned surplus in other statutory subsidiaries. However,statutory dividend capacity will improve since ING U.S. has beenable to transfer amounts out of paid-in capital into unassignedfunds, thereby creating a positive earned surplus account andordinary statutory dividend capacity.

ING U.S.'s financial leverage was approximately 26% at March 31,2013, in line with expectations for the rating category. However,the company's total financing and commitments (TFC) ratio of 1.2xis high compared to other peers and is driven by funding forregulation XXX and AXXX reserve financing as well as securitieslending.

ING U.S.'s recent $1.3 billion initial public offering (IPO) was asignificant step in the restructuring process of becoming anindependent public company. The IPO provides the company withincreased funding flexibility, distribution awareness and accessto capital. While the IPO did not have an immediate impact on theratings, Fitch believes it will likely have long-term positiveramifications for the credit.

The majority shareholder of ING U.S. is ING Groep N.V. (INGGroup), a leading publicly traded global banking and insurancegroup located in the Netherlands. ING Group has an agreement withthe Dutch government to sell its insurance and investmentmanagement operations as part of its repayment for support thatthe company received during the financial crisis. ING Group mustdivest at least 25% of ING U.S. by year-end 2013, which has beensatisfied by the recent IPO, and more than 50% by year-end 2014,with the remaining interest divested by year-end 2016.

ING US's remaining parental ties include letter of creditfacilities provided by ING Bank which have been significantlyreduced and replaced by third party providers. The remainingfacilities are now on an arms-length basis.

ING Life Insurance and Annuity CompanyING USA Annuity and Life Insurance CompanyReliaStar Life Insurance Co.ReliaStar Life Insurance Company of New YorkSecurity Life of Denver Insurance Company

-- Insurer Financial Strength (IFS) at 'A-'.

Equitable of Iowa Companies, Inc.

-- Long-term IDR at 'BBB'.

Equitable of Iowa Companies Capital Trust II

-- 8.424% Trust Preferred Stock at 'BB'.

ISC8 INC: To Hold "Say-on-Pay Votes" Every Three Years------------------------------------------------------ISC8 Inc. has determined that future advisory Say-on-Pay Voteswill occur every three years until the next advisory voteregarding that frequency. The next advisory vote regarding thefrequency of Say-on-Pay Votes is required to occur no later thanthe Company's 2019 Annual Meeting of Shareholders.

In the Company's definitive proxy statement filed on May 4, 2013,the Board of Directors of the Company recommended that theshareholders vote to have a Say-on-Pay Vote every three years. Amajority of the Company's shareholders approved conducting a Say-on-Pay Vote every three years.

About ISC8 Inc.

Costa Mesa, California-based ISC8 Inc. is engaged in the design,development, manufacture and sale of a family of securityproducts, consisting of cyber security solutions for commercialand U.S. government applications, secure memory products, some ofwhich utilize technologies that the Company has pioneered forthree-dimensional ("3-D") stacking of semiconductors, systems in apackage ("Systems in a Package" or "SIP"), and anti-tampersystems.

Squar, Milner, Peterson, Miranda & Williamson, LLP, in NewportBeach, California, expressed substantial doubt about ISC8 Inc.'sability to continue as a going concern. The independent auditorsnoted that as of Sept. 30, 2012. the Company has negative workingcapital of $10.1 million and a stockholders? deficit of$35.4 million.

The Company reported a net loss of $19.7 million on $4.2 millionof revenues in fiscal 2012, compared with a net loss of$15.8 million on $5.2 million of revenues in fiscal 2011. TheCompany's balance sheet at March 31, 2013, showed $4.71 million intotal assets, $47.74 million in total liabilities and a $43.02million total stockholders' deficit.

J&J DEVELOPMENT: JP Weigand to Sell Real Property-------------------------------------------------The U.S. Bankruptcy Court for the District of Kansas hasauthorized J&J Developments, Inc. to employ JP Weigand & Sons Inc.as realtor. JP Weigand will sell real property of the Debtor inexchange for a 6% commission. No retainer or other prepaidcompensation has been paid.

About J & J Developments

J & J Developments Inc. is a real estate holding company holdingtitle to real estate in more than 20 locations in Kansas. Many ofthose locations contain convenience stores.

J & J Developments filed a Chapter 11 petition (Bankr. D.Kan. Case No. 12-11881) in Wichita, Kansas, on July 12, 2012.John E. Brown signed the petition as president and chief executiveofficer. The Debtor is represented by Edward J. Nazar, Esq., atRedmond & Nazar, LLP, in Wichita, Kansas. Judge Robert E. Nugentpresides over the case. According to the petition, the Debtor hasscheduled assets of $18.7 million and scheduled liabilities of$34,933.

As reported by the Troubled Company Reporter on April 5, 2013,J & J Developments, Inc. won confirmation of its Chapter 11Liquidation Plan dated Nov. 30, 2012.

JEWISH COMMUNITY: Adequacy Hrg. on Plan Outline Set for July 25---------------------------------------------------------------Judge Michael B. Kaplan will convene a hearing on July 25, 2013,at 10:00 a.m. at Courtroom #3, in Trenton, New Jersey, to consideradequacy of the Disclosure Statement filed by Jewish CommunityCenter of Greater Monmouth County.

Written objections to the Disclosure Statement are due no laterthan 10 days before the July 25 adequacy hearing.

As reported by The Troubled Company Reporter on June 24, 2013,Jewish Community Center of Greater Monmouth County filed a JointChapter 11 Plan of Reorganization and Disclosure Statement datedMay 29, 2013. The Plan provides that the Reorganized Debtor willoperate the facilities to primarily run the performing artsprogramming, summer camps and the senior, adult and Jewishprogramming. In addition, the Reorganized Debtor will idenity andenter into strategic ventures during 2013 and 2014 with one ormore operators to manage modified uses of the health and physicaleducation facilities. The Plan would include allowing DealSephardic Network ("DSN") to operate its youth programming at thefacility. Through the Plan, the Debtor is rejecting all rightsto, interests in and contracts relating to membership in and acessto the Debtors' educational and recreational services andfacilities. The Plan also provides for a possible sale of theDebtor's assets.

The Plan classifies and designates claims and interests in variousclasses. Creditors of Classes 1 and 2 Secured Claims (Save theJCC -- $6.7 million and Donald Epstein -- $254,444) will retaintheir prepetition lien on the Debtor's assets, and these claimsare expected to be paid in full. Class 3 Priority Wage Claims andClass 4 Priority Employee Benefit Plan Claims are also expected tobe paid in full. Class 5 General Unsecured Claims, estimated tototal $1.6 million, will be paid from a pool that is beingestablished for this class of $100,000. Class 5 Allowed Claimswill each receive a pro-rata portion of the pool based on theGross Amount of all Allowed Claims in the Class.

Jewish Community Center filed for Chapter 11 bankruptcy (Bankr. D.N.J. Case No. 11-44738) on Dec. 5, 2011. Judge Michael B. Kaplanpresides over the case. Timothy P. Neumann, Esq., at Broege,Neumann, Fischer & Shaver, serves as the Debtor's bankruptcycounsel. In its petition, the Debtor estimated assets of$10 million to $50 million and debts of $1 million to $10 million.

On Aug. 9, 2012, the U.S. Trustee appointed Catherine E. Youngman,Esq., as trustee of the Debtor's bankruptcy estate.

JOURNAL REGISTER: Files Joint Plan of Liquidation-------------------------------------------------Pulp Finish 1 Company, f/k/a Journal Register Company, et al., andthe Official Committee Unsecured Creditors appointed in theirChapter 11 cases filed with the U.S. Bankruptcy Court for theSouthern District of New York a joint plan of liquidation andaccompanying disclosure statement to effectuate the liquidation ofthe Debtors' remaining assets, provide for the orderly wind downof their estates, and enable prompt distributions of cash toholders of allowed claims by means of a liquidating trust.

To recall, the Debtors have sold all or substantially all of theirassets to 21st Century Media, Inc. The sale transaction closed onApril 5, 2013.

The Plan provides for the following classification and treatmentof claims:

* Class 1 - Priority Non-Tax Claims. Unimpaired. Each Holder of an Allowed Priority Non-Tax Claim will receive, in full and final satisfaction of the Claim, payment in full in Cash of its Allowed Priority Non-Tax Claim.

* Class 2 - Pre-Petition Revolving Credit Facility Claims. Unimpaired. All Pre-Petition Revolving Credit Facility Claims have been paid in full in Cash prior to July 2, 2013, in full and final satisfaction, settlement, release, and discharge of those Pre-Petition Revolving Credit Facility Claims.

* Class 3 - TLA/TLB Secured Claims. Unimpaired. All TLA/TLB Secured Claims have been satisfied in full and released prior July 2, 2013, pursuant to the 363 Sale Transaction.

* Class 4 - Other Secured Claims. Unimpaired. Each Holder of an Allowed Other Secured Claim will be placed in a separate sub-class, and each sub-class will be treated as a separate class for Distribution purposes. Except to the extent that a Holder of an Allowed Other Secured Claim agrees to a different treatment, on or as soon as practicable after the Effective Date, each Holder of an Allowed Other Secured Claim will receive, in full and final satisfaction of that Allowed Other Secured Claim, either (i) the collateral securing such Allowed Other Secured Claim; or (ii) Cash in an amount equal to the value of that collateral.

* Class 5 - 363 Sale Assumed & Assigned Claims. Unimpaired. Except to the extent that an Allowed 363 Sale Assumed & Assigned Claim has been paid in full by the Purchaser prior to the Effective Date or as otherwise agreed to by a Holder of an Allowed 363 Sale Assumed & Assigned Claim and the Purchaser, each Holder of an Allowed 363 Sale Assumed & Assigned Claim will receive, in full and final satisfaction of that Allowed 363 Sale Assumed & Assigned Claim, payment from the Purchaser in full in accordance with the Asset Purchase Agreement. Holders of Allowed 363 Sale Assumed & Assigned Claims will not receive any Distribution from the Estates or the Liquidating Trust Assets.

* Class 6 - General Unsecured Claims. Impaired. Each Holder of an Allowed General Unsecured Claim will receive, in full and final satisfaction of the Allowed General Unsecured Claim, its Pro Rata Share of the Liquidating Trust Assets after payment in full of Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Priority Non-Tax Claims, Allowed Other Secured Claims and the costs of administration of the Liquidating Trust.

* Class 7 - Intercompany Claims. Impaired. On or after the Effective Date, any and all Intercompany Claims will be adjusted, paid, continued, or discharged to the extent reasonably determined appropriate by the Liquidating Trustee. Any transaction may be effected on or subsequent to the Effective Date without any further order of the Bankruptcy Court.

* Class 8 - Equity Interests. Impaired. Holders of Equity Interests in the Debtors will neither receive nor retain any property under the Plan. On the Effective Date, all Equity Interests in the Debtors will be cancelled and of no further force or effect and all Claims filed on account of Equity Interests will be deemed disallowed by operation of the Plan.

The Plan Proponents estimate that each Holder of an AllowedGeneral Unsecured Claim will receive a Distribution under the Planof approximately 0 to 5% of its Allowed General Unsecured Claim.

There will be a hearing on Aug. 27 where the company hopes thebankruptcy judge in New York will approve disclosure materials socreditors can begin voting on the plan.

Journal Register Company -- http://www.JournalRegister.com/-- is the publisher of the New Haven Register and other papers in 10states, including Philadelphia, Detroit and Cleveland, and inupstate New York. JRC is managed by Digital First Media and isaffiliated with MediaNews Group, Inc., the nation's second largestnewspaper company as measured by circulation.

Journal Register returned to bankruptcy (Bankr. S.D.N.Y. Lead CaseNo. 12-13774) on Sept. 5, 2012, to sell the business to 21st CMHAcquisition Co., an affiliate of funds managed by Alden GlobalCapital LLC. The deal is subject to higher and better offers.

Journal Register exited the 2009 restructuring with $225 millionin debt and with a legacy cost structure, which includes leases,defined benefit pensions and other liabilities that have becomeunsustainable and threatened the Company's efforts for asuccessful digital transformation. Journal Register managed toreduce the debt by 28% with the Company servicing in excess of$160 million of debt.

Alden Global is the holder of two terms loans totaling $152.3million. Alden Global acquired the stock and the term loans fromlenders in Journal Register's prior bankruptcy.

Journal Register disclosed total assets of $235 million andliabilities totaling $268.6 million as of July 29, 2012. Thisincludes $13.2 million owing on a revolving credit to Wells FargoBank NA.

The Official Committee of Unsecured Creditors appointed in thecase has retained Lowenstein Sandler PC as counsel and FTIConsulting, Inc. as financial advisor.

Bloomberg News recounts that Journal Register, now named PulpFinish I Co., sold the newspaper business to lender and ownerAlden Global Capital Ltd., mostly in exchange for $114.15 millionin secured debt and $6 million cash. After debts with higherpriority are paid, what's left from the cash and a $630,000 taxrefund represents most of unsecured creditors' recovery. Therewere no bids to compete with Alden's offer. It paid off financingfor the bankruptcy and assumed up to $22.8 million in liabilities,thus taking care of most trade suppliers who otherwise would haveended up as unsecured creditors. In addition, the lenders waivedtheir deficiency claims, so recoveries by unsecured creditorswon't be diluted.

K-V PHARMACEUTICAL: Silver Point Seeks Full Interest Payment------------------------------------------------------------Maria Chutchian of BankruptcyLaw360 reported that Silver PointFinance LLC and other senior noteholders in K-V PharmaceuticalCo.'s bankruptcy urged a New York bankruptcy judge to force thecompany to pay millions in accrued interest on a group of seniorbonds.

According to the report, the senior noteholders, who said they areowed $235.8 million on their notes as of K-V's bankruptcy filinglast summer, recently let go of an unsuccessful bid to finance K-V's exit from bankruptcy and take over the women's health companyonce it emerges.

The U.S. Trustee appointed five members to serve in the OfficialCommittee of Unsecured Creditors. Kristopher M. Hansen, Esq.,Erez E. Gilad, Esq., and Matthew G. Garofalo, Esq., at Stroock &Stroock & Lavan LLP, represent the Creditors Committee.

KIDSPEACE CORP: Has Final Authority to Obtain $15MM DIP Loans-------------------------------------------------------------The U.S. Bankruptcy Court for the Eastern District of Pennsylvaniagave final authority for KidsPeace Corporation, et al., to obtainpostpetition financing up to a maximum outstanding amount of $15million from HFG Healthco-4 LLC, as a lender, and HealthcareFinance Group, LLC, as a lender and administrative agent.

The proceeds of the DIP Facility will be used to repay theoutstanding amounts due to Gemino Healthcare Finance, LLC, under aprepetition credit agreement. In exchange for the payment, Geminoreleases the Debtors from all claims and causes of action arisingfrom the Gemino Prepetition Credit Agreement.

The Court also gave the Debtors authority to use the cashcollateral securing their prepetition indebtedness from thePetition Date until the occurrence and continuation of an event ofdefault as the Debtors do not have sufficient available resourcesof working capital and financing to carry on the operation oftheir business without access to the DIP Loans and the CashCollateral.

All the DIP Lender Debt will have the status of an allowedsuperpriority administrative expense claim. As security for thefull and timely payment of the Lender Debt, the DIP Agent isgranted liens on, and security interests in, all of theCollateral, subject only to the Carve-out, the valid non-primedprepetition senior liens and the bond trustee's priming adequateprotection lien.

As adequate protection, to the extent of any diminution in valueof the Cash Collateral following the Petition Date, holders ofliens and interests in the Collateral are granted replacementliens.

Assets total $158,587,999 at the end of 2012. The Debtors oweapproximately $56,206,821 in bond debt, and they have been toldthat their pension liability is allegedly about $100,000,000 ofwhich the Debtors currently reflect $83,049,412 on their books.

KidsPeace sought Chapter 11 (i) as a means to implement anegotiated restructuring of bond debt currently aggregatingapproximately $51,310,000 plus accrued interest to a reducedamount of approximately $24 million in new 30-year bonds withinterest at 7.5 percent, and (ii) to continue on-goingnegotiations with the Pension Benefit Guaranty Corporation inhopes of reducing the PBGC asserted obligation of $100+ million toan amount that the Debtors can reasonably expect to satisfy.

Since March of 2012, MK has been exploring possible affiliation oracquisition opportunities; however, no offer of an affiliation oracquisition has been presented to the Debtors.

The Committee also seeks authority to retain FTI Consulting, Inc.,as financial advisor, to, among other things, assist in the reviewof financial related disclosures required by the Court, includingthe schedules of assets and liabilities, the statements offinancial affairs, and the monthly operating reports.

FTI has agreed with the Committee to seek payment for compensationon a fixed monthly basis of $60,000 for the first two months and$45,000 per month thereafter, plus reimbursement of actual andnecessary expenses incurred.

In addition, FTI will be compensated at its customary hourly ratesfor services related to expert valuation services:

Assets total $158,587,999 at the end of 2012. The Debtors oweapproximately $56,206,821 in bond debt, and they have been toldthat their pension liability is allegedly about $100,000,000 ofwhich the Debtors currently reflect $83,049,412 on their books.

KidsPeace sought Chapter 11 (i) as a means to implement anegotiated restructuring of bond debt currently aggregatingapproximately $51,310,000 plus accrued interest to a reducedamount of approximately $24 million in new 30-year bonds withinterest at 7.5 percent, and (ii) to continue on-goingnegotiations with the Pension Benefit Guaranty Corporation inhopes of reducing the PBGC asserted obligation of $100+ million toan amount that the Debtors can reasonably expect to satisfy.

Since March of 2012, MK has been exploring possible affiliation oracquisition opportunities; however, no offer of an affiliation oracquisition has been presented to the Debtors.

An official committee of unsecured creditors composed of UMB Bank,N.A., on behalf of bondholders, Performance Food Group d/b/a AFI,W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, andTeresa Laudenslager, were appointed in the Chapter 11 cases.

KIDSPEACE CORP: Court Directs Patient Care Ombudsman Appointment----------------------------------------------------------------Judge Richard Fehling of the U.S. Bankruptcy Court for the EasternDistrict of Pennsylvania, directed Roberta A. DeAngelis, the U.S.Trustee for Region 3, to appoint one disinterested person to serveas patient care ombudsman to carry out the obligations set forthin Section 333(b) and (c) of the Bankruptcy Code in the Chapter 11cases of KidsPeace Corporation and its debtor affiliates.

Section 333(a) provides that the court will direct the appointmentof a patient care ombudsman in a case where the debtor is a healthcare business, unless the court determines the appointment of anombudsman is not necessary for the protection of patients underthe specific facts of the case.

Assets total $158,587,999 at the end of 2012. The Debtors oweapproximately $56,206,821 in bond debt, and they have been toldthat their pension liability is allegedly about $100,000,000 ofwhich the Debtors currently reflect $83,049,412 on their books.

KidsPeace sought Chapter 11 (i) as a means to implement anegotiated restructuring of bond debt currently aggregatingapproximately $51,310,000 plus accrued interest to a reducedamount of approximately $24 million in new 30-year bonds withinterest at 7.5 percent, and (ii) to continue on-goingnegotiations with the Pension Benefit Guaranty Corporation inhopes of reducing the PBGC asserted obligation of $100+ million toan amount that the Debtors can reasonably expect to satisfy.

Since March of 2012, MK has been exploring possible affiliation oracquisition opportunities; however, no offer of an affiliation oracquisition has been presented to the Debtors.

An official committee of unsecured creditors composed of UMB Bank,N.A., on behalf of bondholders, Performance Food Group d/b/a AFI,W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, andTeresa Laudenslager, were appointed in the Chapter 11 cases.

KINGSBURY CORP: Plan Outline Hearing Set for July 18----------------------------------------------------The hearing to consider adequacy of Kingsbury Corp., et al.'sDisclosure Statement explaining their Plan of Liquidation has beencontinued from June 25, 2013 to July 18, 2013, at 1:30 p.m.

As reported in the May 7, 2013 edition of The Troubled CompanyReporter, KMTC, f/k/a Kingsbury Corporation, Donson Group, Ltd.,and Ventura Industries, LLC, proposed a liquidating plan, whichprovides for the sale of Kingsbury's real estate located at 80Laurel Street, Keene, New Hampshire. Secured claims will be paidin full from the sale proceeds, or holders of secured claims willretain their liens in the real estate and their allowed securedclaims will be satisfied from the real estate proceeds. Generalunsecured claims will be paid in full, while interests will becancelled and holders of interests will take nothing under thePlan. A full-text copy of the Disclosure Statement dated April22, 2013, is available for free at:

The U.S. Trustee said the Disclosure Statement should be amendedto provide an update on the foreclosure of the Keene facility. Hehas reason to believe that a successful bid was submitted for theproperty but no closing has occurred yet. The Plan Outline shouldaddress what impact the foreclosure has on the feasibility of thePlan, the U.S. Trustee asserted.

The Disclosure Statement, the U.S. Trustee said, should alsoaddress contentions and effects of potential environmental claimswith respect to alleged dangerous waste at the foreclosed Keenefacility.

The Disclosure Statement, the U.S. Trustee added, should beamended to clarify that, because this is a liquidating plan, theDebtors will not receive a discharge under 11 U.S.C. Sec.1141(d)(3).

The Plan contains an exculpation provision as well as languagepermanently enjoining third parties from enforcing claimsagainst, inter alia, the Debtors, the Disbursing Agent, theResponsible Officer and the Liquidating Trustee, and theirrespective professionals. The Disclosure Statement, the U.S.Trustee said, does not contain adequate information to allow theCourt to exercise its discretion to enjoin third parties under themulti-factor test summarized in Master Mortgage Inv. Fund, Inc. ,168 B.R. 930, 935 (Bankr. W.D. Mo. 1994). The U.S. Trusteefurther objects that such protections are inappropriate forbankruptcy professionals, and the release of non-debtor parties toa plan of reorganization directly contravenes 11 U.S.C. ? 524(e).

Moreover, the U.S. Trustee stated that the Disclosure Statement:

-- does not contain liquidation analysis or a description of the Debtors' current assets;

-- does not contain adequate information on the proposed sale of the Debtors' residual assets;

-- is silent on what dividend will be paid to unsecured creditors under the Plan;

-- does not contain sufficient information on the amount of administrative and priority claims;

-- does not state whether the disbursing agent will be bonded or what the agent's estimated fees, if any, will be;

-- should state whether the liquidating trustee will be bonded or what the trustee's estimated fees, if any, will be;

William K. Harrington, the U.S. Trustee for Region 1, appointedfive members to serve on the Official Committee of UnsecuredCreditors.

LAGRANGE, KY: Moody's Cuts Rating on GO Bonds & Rev. Notes to Ba3-----------------------------------------------------------------Moody's Investors Service has downgraded to Ba2 from A3 the ratingon the City of LaGrange's (KY) General Obligation bonds and LeaseRevenue notes, affecting $11 million in rated parity debt. Thebonds and notes are backed by the city's general obligationpledge. Outlook remains negative.

Rating Rationale

The rating reflects the city's debt structure and the uncertaintysurrounding the city's ability to retire its lease revenue debt.The Series 2012A General Obligation Lease Revenue Notes issued byOldham-LaGrange Development Authority (OLDA), secured by leasepayments from the city and backed by its general obligationpledge, have a scheduled principal payment of $8.1 million in June2015. The original 2005 term bonds, refinanced with the Series2012A, were used to purchase and develop 1,000 acres of land foroffice buildings and other commercial purposes. OLDA has beenunable to sell most of the land. Absent any sales to repay noteholders, the city is responsible for the debt and will depend onmarket access for continued refinancing of the notes.

The city was planning to refund the 2012 series with long-termGeneral Obligation debt in the spring of 2014. However, debtretirement depends on the ability of the city to generateadditional revenues to service these bonds. Current projectionsfor the restructuring proposes a 20 year maturity of level debtservice around $600,000 annually. The city's mayor introduced abill proposing the adoption of a local payroll tax on salaries andwages earned within the city's taxing jurisdiction that wouldbring in an estimated $600,000 annually and would be in placeuntil the debt was retired. The vote on the bill has been tabledtwice since its inception in 2012. On July 1, 2013, the bill wasvoted down. The mayor reports that no alternatives to the payrolltax have been introduced and that the city will likely be forcedto default on the scheduled principal payment of $8.1 million inJune 2015. Moody's views the failure to implement the new revenuesource in order to pay the city's debt obligations as indicativeof a substantial credit risk. Absent an executed plan to repaynote holders in the near term, further downgrades of the city'srating are likely.

Strengths

- Tax base located in the Louisville-Jefferson County MSA

Challenges

- Narrow financial position of the city's General Fund, characterized by declining reserves and significant presence of passive revenue streams

The negative outlook reflects the lack of an executed plan fordebt retirement and restructuring. Additionally, the negativeoutlook reflects Moody's belief that the city's financial positionwill continue to be pressured as a result of its debt structureand structural imbalances in the General Fund. Moody's expectsthese factors to continue to challenge the city in the near-term.

What Could Move the Rating Up

- Refinancing debt with affordable debt payments

- Generating new revenues sufficient to service the outstanding debt

- Trend of surpluses in the General Fund achieved through balanced operations

- Substantial growth in full valuation

What Could Move the Rating Down

- Inability to manage weak debt structure

- Further trend of operating deficits and deteriorating General Fund reserve

- Trend of significant declines in full valuation

The principal methodology used in this rating was GeneralObligation Bonds Issued by US Local Governments published in April2013.

LAKELAND INDUSTRIES: Arenal Capital Holds 9.6% Equity Stake-----------------------------------------------------------In a Schedule 13D filing with the U.S. Securities and ExchangeCommission, Arenal Capital Partners LP and Arenal Capital Fund LPdisclosed that, as of June 28, 2013, they beneficially owned566,015 shares of common stock of Lakeland Industries, Inc.,representing 9.6 percent of the shares outstanding. A copy of theregulatory filing is available at http://is.gd/kR1tmR

In its audit report on the consolidated financial statements forthe year ended Jan. 31, 2013, Warren Averett, LLC, in Birmingham,Alabama, expressed substantial doubt about Lakeland Industries'ability to continue as a going concern. The independent auditorsnoted that Company is in default on certain covenants of its loanagreements at Jan. 31, 2013. "The lenders have not waived theseevents of default and may demand repayment at any time.Management is currently trying to secure replacement financing butdoes not have new financing available at the date of this report."

The Company reported a net loss of $26.3 million on $95.1 millionof net sales for the year ended Jan. 31, 2013, compared with a netloss of $376,825 on $96.3 million of sales for the year endedJan. 31, 2012.

The Plan provides that, on the Effective Date, new interests willbe issued to first lien lenders from whom the Debtors owed$181.2 million. Holders of the $108.5 million in secured claimswere unanimously in favor of the plan. Among the $151.5 millionin unsecured claims that voted, 99.9 percent were in favor. Forholders of $215.2 million in unsecured claims, there will be arecovery of 0.02 percent from a sharing of $40,000 made availableby secured lenders. The bankruptcy took longer than expectedbecause a sale to the Chickasaw Nation for $125 million fellthrough after being approved by the court.

When the sale went by the boards, the lenders stepped forward totake ownership through a new plan giving them a $80 million first-lien term loan on emergence from bankruptcy. Once gamingregulators give lenders permission to become owners, they willexercise options to assume stock ownership at a nominal price.The approved disclosure statement showed senior lenders with a 46percent recovery.

The second-lien claim of $116.3 million is treated as an entirelyunsecured claim in a class of unsecured creditors including thedeficiency claim of the first-lien lenders.

Judge Callaway also approved final modifications to the Plan,which modifications were non-material within the meaning of Rule3019 of the Federal Rules of Bankruptcy Procedure. Moreover,Judge Callaway authorized Debtor Legends Gaming, LLC, to amend theengagement letter agreement it entered into with Sea Port GamingSecurities, LLC, so that agreement conforms to the changes in thepayment terms of the transaction fee set forth in the Plan.

LEHMAN BROTHERS: Brokerage Trustee Balks at Countrywide Claims--------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the trustee liquidating the brokerage subsidiary ofLehman Brothers Holdings Inc. filed papers last week to knock outclaims filed by plaintiffs in a class lawsuit against CountrywideFinancial Corp. and underwriters of its securities.

According to the report, Lehman brokerage trustee James Giddenspoints to the 2010 settlement of the class suit where theplaintiffs took $624 million and released all claims againstCountrywide and its underwriters. Although Giddens asked theplaintiffs to drop their claims in the Lehman brokerageliquidation, they didn't.

The report notes that consequently, Giddens filed papers last weekand scheduled an Aug. 21 hearing where he will ask the bankruptcyjudge to dismiss the claim based on the release given to allunderwriters in settling the suit. Before the settlement, Lehmanhad been dismissed from the suit on account of its bankruptcy.

The report relates that the lead plaintiff in the suit is ThomasDiNapoli, the New York State Comptroller.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. Formore than 150 years, Lehman Brothers has been a leader in theglobal financial markets by serving the financial needs ofcorporations, governmental units, institutional clients andindividuals worldwide.

On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.District Court for the Southern District of New York, entered anorder commencing liquidation of Lehman Brothers, Inc., pursuantto the provisions of the Securities Investor Protection Act (CaseNo. 08-CIV-8119 (GEL)). James W. Giddens has been appointed astrustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court approved Barclays Bank Plc's purchase ofLehman Brothers' North American investment banking and capitalmarkets operations and supporting infrastructure for US$1.75billion. Nomura Holdings Inc., the largest brokerage house inJapan, purchased LBHI's operations in Europe for US$2 plus theretention of most of employees. Nomura also bought Lehman'soperations in the Asia Pacific for US$225 million.

Lehman emerged from bankruptcy protection on March 6, 2012, morethan three years after it filed the largest bankruptcy in U.S.history. The Chapter 11 plan for the Lehman companies other thanthe broker was confirmed in December 2011.

Lehman made its first payment of $22.5 billion to creditors inApril 2012 and a second payment of $10.2 billion on Oct. 1. Athird distribution is set for around March 30, 2013. Thebrokerage is yet to make a first distribution to non-customers.

LIBERACE FOUNDATION: Court Sets Aug. 14 Hearing on Plan Outline---------------------------------------------------------------The Liberace Foundation for the Creative and Performing Arts filedwith the U.S. Bankruptcy Court for the District of Nevada onJune 24, 2013, a disclosure statement explaining the Debtor'sLiquidating Plan of Reorganization. The hearing to consider theapproval of the disclosure statement is scheduled for Aug. 14,2013, at 9:30 a.m.

On May 10, 2013, the Debtor received Court authorization to sellits property located at 1775 East Tropicana Avenue, Las Vegas,Nevada. Shortly thereafter the Debtor sold the property for thepurchase price of $2,300,000.

The undisputed portion of the Disputed Claim of US Bank in Class 1was paid out of the Property sale proceeds upon closing. Thedisputed portion will be paid out of the remaining Property saleproceeds pursuant to the agreement of the parties or a court orderdetermining the Allowed amount of the disputed portion.

The total estimated amount of the General Unsecured Claims inClass 2 asserted against the Debtor is $38,655.25. Class 2 Claimswill be paid in full in Cash, from the funds held in the Debtor'sNevada Trust account, on the Effective Date.

The Liberace Revocable Trust, the Equity Interest Holder in Class3 will be retaining its equity interests, and thus, is unimpairedby the Plan.

The Disclosure Statement was filed by Nedda Ghandi, Esq., atGhandi Law Offices, in Las Vegas, Nevada, counsel for the Debtor.

About Liberace Foundation

Founded in 1976, the Liberace Foundation for the Creative andPerforming Arts -- http://www.liberace.org/-- helps students in Southern Nevada pursue careers in the performing and creative artsthrough scholarship assistance and artistic exposure. Thefoundation has awarded more than 2,700 students with scholarships.It owns the Liberace Museum Collection at 1775 E. Tropicana, inLas Vegas. The Liberace Museum, which has exhibited the jewelry,pianos, garish gowns and other artifacts owned by the greatpianist and showman, was opened in 1979. The property is valuedat $13 million. The secured creditor, U.S. Bank N.A., is owed$1.269 million.

Liberace Foundation filed a Chapter 11 petition (Bankr. D. Nev.Case No. 12-22004) in Las Vegas on Oct. 24, 2012, estimating$10 million to $50 million in both assets and liabilities.

Bankruptcy Judge Mike K. Nakagawa presides over the case. TheGhandi Law Offices serves as the Debtor's counsel. BrownsteinHyatt Farber Schreck, LLP serves as special counsel. The petitionwas signed by Anna Nateece, business manager.

No committee has been appointed or designated by the U.S. Trustee.

LIFE CARE ST. JOHNS: Glenmoor Retirement Community in Ch. 11------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Life Care St. John's Inc., an adult continuing-carecommunity 25 miles (40 kilometers) south of Jacksonville, Florida,filed a petition for Chapter 11 reorganization (Bankr. M.D. Fla.Case No. 13-bk-04158) on July 3, 2013, in Jacksonville.

According to the report, known as Glenmoor, the nonprofit projectowes $55.6 million on four bond issues. Financial problems werecaused by low occupancy and higher than expected health-carecosts. Other liabilities include $7.8 million owing to residentswho moved out.

The facility has 159 units and serves 247 residents. It islocated in World Golf Village, a master-planned community.

LIFE CARE ST. JOHNS: Section 341(a) Meeting Set on Aug. 14----------------------------------------------------------A meeting of creditors in the bankruptcy case of Life Care St.Johns, Inc., will be held on Aug. 14, 2013, at 1:00 p.m. atJacksonville, FL (3-40) - Suite 1-200, 300 North Hogan St.Creditors have until Nov. 12, 2013, to submit their proofs ofclaim.

This is the first meeting of creditors required under Section341(a) of the Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. Thismeeting of creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

LIFECARE HOLDINGS: U.S. Trustee Embarking on Test-Case Appeal-------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the U.S. Justice Department is embarking on a test-case appeal to bar using a legal fiction that allows unsecuredcreditors to grab money they wouldn't otherwise be entitled toreceive in strict adherence with bankruptcy law. Hospital ownerLifeCare Holdings Inc. is the guinea pig for the appeal beingtaken by the tax division of the Justice Department in Washington.So far, LifeCare has come out on top, with help from the U.S.Bankruptcy Court in Delaware.

The report recounts that in June, LifeCare completed the $320million sale of its 26 remaining hospitals to secured lenders inexchange for debt. The sale was approved by the bankruptcy courtin April. The Internal Revenue Service appealed because therewon't be any cash from the sale to pay a $24 million gains tax.

The report relates that, also last month, the bankruptcy courtapproved a settlement over objection from the government. In thesettlement, the official unsecured creditors' committee dropped anobjection to the sale in return for $3.5 million from the securedcreditors. The $3.5 million is earmarked exclusively forunsecured creditors and can't be used to pay creditors with higherpriority claims, such as the government's tax claim. Thegovernment's papers argue that bankruptcy law doesn't permit asale "for the benefit of a single or select group of creditors, tothe detriment of other creditors." In addition to taking issuewith the $3.5 million earmarking for unsecured creditors, thegovernment faults the sale for paying some Chapter 11 expenses andnot others.

After the Delaware bankruptcy court denied a stay pending appeal,the government turned to U.S. District Judge Sue L. Robinson inWilmington. In papers filed last week, the government is askingJudge Robinson to allow completion of the sale while blockingdistribution of the $3.5 million. The Justice Department arguesthat the settlement evades the priority rules laid out in theBankruptcy Code where unsecured creditors aren't entitled topayment until higher ranking claims like taxes are paid in full.Since the sale occurred after bankruptcy, the resulting gains taxwould be an expense of the Chapter 11 case that ordinarily must bepaid before pre-bankruptcy unsecured creditors, according to thegovernment.

The report notes that if the government wins on appeal, the often-used settlement structure wouldn't be permissible in Delaware,where many of the country's larger Chapter 11 bankruptcies arefiled. Success by the government would result in no recoveries orlower recoveries by unsecured creditors in some corporatebankruptcies. If the government loses in Robinson's court, theJustice Department can appeal to the U.S. Court of Appeals inPhiladelphia.

As a result of the settlement with lenders, unsecured LifeCarecreditors are to receive $1.5 million from which they estimatehaving a 7.5 percent cash recovery. The settlement gives $2million cash to subordinated noteholders, for a 1.7 percentrecovery. The senior lenders provided another $150,000 for thecreditors' lawyers. The lenders were owed about $355 million on asecured credit facility with JPMorgan Chase Bank NA as agent.

About LifeCare

LCI Holding Company, Inc., and its affiliates, doing business asLifeCare Hospitals, operate eight "hospital within hospital"facilities and 19 freestanding facilities in 10 states. Thehospitals have about 1,400 beds at facilities in Louisiana, Texas,Pennsylvania, Ohio and Nevada. LifeCare is controlled by CarlyleGroup, which holds 93.4% of the stock following a $570 millionacquisition in August 2005.

The Debtors disclosed assets of $422 million and liabilitiestotaling $575.9 million as of Sept. 30, 2012. As of thebankruptcy filing, total long-term obligations were $482.2 millionconsisting of, among other things, institutional loans andunsecured subordinated loans. A total of $353.4 million is owingunder the prepetition secured credit facility. A total of$128.4 million is owing on senior subordinated notes. LifeCareHospitals of Pittsburgh, LLC, a debtor-affiliate disclosed$24,028,730 in assets and $484,372,539 in liabilities as of theChapter 11 filing.

The lenders provided $25 million in secured financing for theChapter 11 case.

According to the report, the reorganization plan will include atender offer where Ventura Capital Provida SA will acquireexisting equity for 2.9 pesos (22 cents) a share. Therecapitalization will be completed through approval of areorganization plan in a U.S. bankruptcy court, according to thecompany's July 3 statement.

The report notes that all creditors will be paid in full otherthan holders of the $200 million in 11 percent first-lien notesdue in 2014. Holders will receive new notes for the fullprincipal amount bearing interest initially at 6 percent andrising to 8 percent before maturity in 2020. The reorganizationhas support from holders of $84 million of the 11 percent notes,Ventura and some shareholders.

About Maxcom

Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in MexicoCity, Mexico, is a facilities-based telecommunications providerusing a "smart-build" approach to deliver last-mile connectivityto micro, small and medium-sized businesses and residentialcustomers in the Mexican territory. Maxcom launched commercialoperations in May 1999 and is currently offering local, longdistance, data, value-added, paid TV and IP-based services on afull basis in greater metropolitan Mexico City, Puebla, Tehuacan,San Luis, and Queretaro, and on a selected basis in several citiesin Mexico.

In June 2013, Maxcom didn't make an $11 million interest paymenton the notes. At the time, the company said it would use the 30-day grace period to negotiate a restructuring to be carried outthrough a Chapter 11 filing in the U.S.

The lawsuit was filed in March 2011 by Maximum seeking damages of$600,000 based on causes of action for breach of warrantyagreement, breach of commercial warranty and intentionalinterference with business relations. Maximum alleged Quinnrefused to honor the warranty on its repair of an expensive pieceof construction equipment, and Quinn interfered with Maximum'sbusiness relations by threatening not to do business with anyonedoing business with Maximum.

In its June 13, 2013 Order available at http://is.gd/w0B7DWfrom Leagle.com, the Appeals Court held that summary judgment wasproperly granted in favor of the defendants on the ground thatMaximum lacked standing to bring the action and the formerbankruptcy trustee also lacked standing because the bankruptcycase had been closed and he head been discharged.

Costs on appeal are awarded to Quinn Group, Inc., and Caterpillar,Inc.

In April 2009, Maximum filed for bankruptcy protection underChapter 11 (Bankr. C.D. Calif, Case No. 09-11243). The scheduleof personal property (Schedule B) in the Chapter 11 proceedingmakes no mention to warranty claims against the defendants. InSeptember 2010, the bankruptcy was converted to Chapter 7, andagain, Maximum failed to set forth the warranty claims on ScheduleB. In February 2011, the case was closed by the bankruptcy courtand the trustee was discharged of his duties.

MDU COMMUNICATIONS: To Run Out of Cash by September---------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that MDU Communications International Inc., atelecommunications provider, said in a regulatory filing last weekthat its cash resources will be depleted by Sept. 30.

According to the report, the Totowa, New Jersey-based company saidit's exploring "large asset sales" or a merger. The company'srevolving-credit lender extended maturity of the facility toDec. 31 from June 30, with the possibility of an extension toMarch 31.

The report discloses that as of June 30, MDU had borrowed $27.7million from $28 million that was available under the borrowing-base formula.

About MDU Communications

Totowa, New Jersey-based MDU Communications International, Inc.,is a national provider of digital satellite television, high-speedInternet, digital phone and other information and communicationservices to residents living in the United States multi-dwellingunit market -- estimated to include 32 million residences.

For the six months ended March 31, there was $152,000 in operatingincome and a net loss of $1.5 million on revenue of $12 million.

The Company reported a net loss of $6.4 million on $27.3 millionof revenue for fiscal year ended Sept. 30, 2012, compared with anet loss of $7.4 million on $27.9 million of revenue for 2011.

The Company's balance sheet at March 31, 2013, showed $18.04million in total assets, $32.14 million in total liabilities and a$14.09 million total stockholders' deficiency.

CohnReznick LLP, in Roseland, New Jersey, expressed substantialdoubt about MDU's ability to continue as a going concern followingthe financial results for the year ended Sept. 30, 2012. Theindependent auditors noted that the Company has incurredsignificant recurring losses, has a working capital deficit, andan accumulated deficit of $75 million at Sept. 30, 2012. Theyalso noted that the Company's $30 million Credit Facility matureson June 30, 2013.

Proceeds from the credit facilities along with balance sheet cashof $28 million will be used to repay $601 million of MediaGeneral's existing debt plus $163 million of Young Broadcasting'sdebt, as well as to fund $61 million of call premiums, a $50million pension plan contribution, plus $53 million of fees andexpenses. The Probability of Default Rating was upgraded to B2-PDfrom Caa1-PD reflecting the proposed all bank debt structure. TheSpeculative Grade Liquidity Rating was upgraded to SGL -- 2 fromSGL -- 3 and the rating outlook is stable. These actions concludeMoody's review for upgrade of the company's ratings initiated onJune 10, 2013.

The B1 corporate family rating reflects Media General's pendingmerger with Young Broadcasting in an all-stock transactionresulting in expanded coverage of US households as well asfavorable geographic and network diversification. Leverage is highbut reflects marked improvement with a 2-year average debt-to-EBITDA ratio of 5.1x estimated for FYE 2013 (including Moody'sstandard adjustments, pro forma for the merger) compared to MediaGeneral's standalone 2-year average of 7.9x as of March 31, 2013.Other credit metrics, including interest coverage and free cashflow to debt ratios, will improve meaningfully due to lowerinterest rates on the proposed term loan compared to the average11.1% on Media General's existing funded debt instruments. Typicalof television broadcasters, the company's vulnerability tocyclical advertising downturns and increasing media fragmentationweigh on ratings.

The ratings are supported by the company's consistent #1 or #2revenue rankings in a majority of its markets several of whichbenefit from traditionally strong political advertising demand,good local news programs, and continued increases in non-cyclicalcash flow which benefit from retransmission agreements (net ofreverse compensation payments). "Since the sale of its newspaperoperations one year ago, management successfully executed itsstrategy to transition into a pure-play broadcaster by trackingabove its initial revenue and EBITDA plan leading up to theproposed merger while reducing corporate overhead run-rate expenseto roughly $20 million per year from $32 million. Moody's believesmanagement is committed to reducing leverage and will besuccessful in realizing planned synergies totaling $25 million to$30 million based on elimination of redundant costs, a reductionin interest expense and, to a lesser extent, an uplift inretransmission fees," stated Carl Salas, Moody's VP and SeniorCredit Officer. The company has good liquidity with cash balanceof a minimum $15 million and full availability under the $60million revolver.

The stable rating outlook reflects Moody's view that, pro formafor the merger, Media General will continue to grow core ad salesbut total revenues will decline in FY2013 due to the absence ofsignificant political advertising, followed by the return ofheightened political ad demand in 2014. Leverage should improvefrom initial levels as free cash flow is applied to reduce termloan balances and the refinancing of existing debt facilitiesresults in lower interest expense despite higher debt balances.The outlook does not incorporate debt financed acquisitions thatwould meaningfully increase leverage ratios.

Media General's ratings could be downgraded if revenues or EBITDAdeteriorate due to economic weakness or underperformance in one ormore key markets, or if debt financed transactions includingacquisitions or distributions, result in 2-year average debt-to-EBITDA ratios being sustained above 5.50x (including Moody'sstandard adjustments) or 2-year average free cash flow-to-debtratios falling below 5%. Ratings could be considered for anupgrade if Media General maintains 2-year average debt-to-EBITDAleverage comfortably below 4.50x with minimum 2-year average freecash flow-to-debt ratios of 9%. Liquidity would also need toremain good including maintaining a comfortable EBITDA cushion tofinancial covenants, and Moody's would need to be assured thatmanagement would maintain operating and financial policies thatwould be consistent with the higher rating.

The principal methodology used in this rating was the GlobalBroadcast and Advertising Related Industries Methodology publishedin May 2012. Other methodologies used include Loss Given Defaultfor Speculative-Grade Non-Financial Companies in the U.S., Canadaand EMEA published in June 2009.

Media General, Inc., headquartered in Richmond, VA, is atelevision broadcaster and will operate 30 primary televisionstations and online enterprises across 27 markets ranked #6 to#167 covering an estimated 14.1% of U.S. television householdswith 16 stations in the largest 75 media markets, post-closing ofthe announced merger with New Young Broadcasting Holding Co., Inc.The company's network affiliations will include 11 CBS stations, 9NBC, 7 ABC, as well as one each of Fox, CW and MNT. Media Generalis publicly traded and, as part of the merger, will reclassifyeach outstanding share of its Class A and Class B stock into oneshare of a newly created class of common stock, eliminating thedual class structure. Owners include Standard General (roughly 28%ownership), Oppenheimer (13%), Gabelli (10%), and Highland Capital(10%), with the remainder being widely held. The merger isexpected to close in late Q3 or early Q4 2013 and is subject toHart-Scott-Rodino consent, as well as approval by the FCC andMedia General shareholders. Revenues pro forma for the mergertotaled $605 million in 2012.

METROPOLITAN NATIONAL: Enters Ch. 11 With $16MM Recapitalization----------------------------------------------------------------Maria Chutchian of BankruptcyLaw360 reported that the holdingcompany for Arkansas-based Metropolitan National Bank enteredChapter 11 bankruptcy following years of mortgage-related lossesand announced a $16 million recapitalization offer from a Texas-based private equity firm.

According to the report, Rogers Bancshares Inc. filed its petitionin the U.S. Bankruptcy Court for the Eastern District of Arkansas,blaming the 2008 economic and housing crisis for its lingeringfinancial problems, which include more than $100 million innonperforming mortgage loans. The company has about $92.5 millionin debt.

MSR RESORT: Five Mile Seeks Independent Trustee-----------------------------------------------Jacqueline Palank writing for Dow Jones' DBR Small Cap reportsthat Five Mile Capital Partners LLC is accusing MSR Hotels &Resorts Inc .of using its Chapter 11 case to shield its directorsfrom possible liability for their alleged misconduct and wants anindependent trustee to take charge of the company.

According to the report, Five Mile, an investment firm, said lastweek millions of dollars are on the line in connection with thelegal claims against MSR's directors, which include breach offiduciary duty, and it wants the company to pursue them. However,Five Mile said MSR's management has decided not to pursue thelitigation, which Five Mile said is a clear conflict of interest.

MSR Resorts sought Chapter 11 bankruptcy to thwart a lawsuit bylender Five Mile Capital Partners that claims it is owed tens ofmillions of dollars related to the recent sale of several luxuryresorts. MSR Hotels will seek to sell its remaining assets andwind down.

Following the acquisition, five of the resorts with mortgage debtscheduled to mature on Feb. 1, 2011, were sent to Chapter 11bankruptcy by the Paulson and Winthrop joint venture affiliates.Then known as MSR Resort Golf Course LLC, the company and itsaffiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. LeadCase No. 11-10372) in Manhattan on Feb. 1, 2011. The resortssubject to the 2011 filings were Grand Wailea Resort and Spa,Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGAWest, Doral Golf Resort and Spa, and Claremont Resort and Spa.

In the 2011 petitions, the five resorts had $2.2 billion in assetsand $1.9 billion in debt as of Nov. 30, 2010. In its 2011schedules, MSR Resort disclosed $59,399,666 in total assets and$1,013,213,968 in total liabilities.

The Official Committee of Unsecured Creditors in the 2011 case wasrepresented by Martin G. Bunin, Esq., and Craig E. Freeman, Esq.,at Alston & Bird LLP, in New York.

In March 2012, the Debtors won Court approval to sell the DoralGolf Resort to Trump Endeavor 12 LLC, an affiliate of DonaldTrump's Trump Organization LLC, for $150 million. An auction washeld in February that year but no other bids were received.

The 2011 Debtors won approval of a bankruptcy-exit plan inFebruary this year. That plan was predicated on the sale of theremaining four resorts by the Government of Singapore InvestmentCorp. -- the world's eighth-largest sovereign wealth fund,according to the Sovereign Wealth Fund Institute -- for $1.5billion.

U.S. Bankruptcy Judge Sean Lane, who oversaw the 2011 cases,overruled Plan objections by the U.S. Internal Revenue Service andinvestor Five Mile. The IRS and Five Mile alleged that the salecreated a tax liability of as much as $331 million that may not bepaid.

Bloomberg News reported that the exit plan provides for repaymentof 96% of secured debt and 100% of general unsecured debt. FiveMile stood to lose about $58 million, including investments bypension funds and other parties, David Friedman, Esq., a lawyerfor Five Mile, said during the Plan approval hearing, according toBloomberg.

That Plan was declared effective on Feb. 28, 2013.

On April 9, 2013, Five Mile sued Paulson & Co. executives and MSRHotels in New York state court, alleging they (i) mishandled thecompany's intellectual property and other assets in a bankruptcysale, and failed to get the best price for the assets, and (ii)owe Five Mile $58.7 million on a loan. According to a Reutersreport, Five Mile seeks $58.7 million representing sums owed,including interest and costs, plus at least $100 million forbreach of fiduciary duty, gross negligence and corporate waste.

NESBITT PORTLAND: Has Plan Support Agreement With U.S. Bank-----------------------------------------------------------Nesbitt Portland Property LLC, et al., and U.S. Bank NationalAssociation ask the U.S. Bankruptcy Court for the Central Districtof California to approve a Plan Support Agreement and related TermSheet; and authorize and direct the Debtors to perform theirobligations under the agreement and approve bidding and salesprocedures.

The Plan Support Agreement represents a global agreement toconsensually resolve the cases and the claims of the securedlender against the Debtors and against the guarantor.

Among other things, the Plan Support Agreement provides for a saleprocess that will maximize the value of the hotels and the filingand prosecution of a consensual Chapter 11 Plan for the Debtorsthat will result in the payment in full of all non-insider allowedclaims.

U.S. Bank serves as trustee, as successor-in-interest to Bank ofAmerica, N.A., as trustee, for Registered Holders of GS MortgageSecurities Corporation II, Commercial Mortgage Pass-ThroughCertificates, Series 2006-GG6.

About Nesbitt Portland Property et al.

Windsor Capital Group Inc. CEO Patrick M. Nesbitt sent hotel-companies to Chapter 11 bankruptcy to stop a receiver named byU.S. Bank National Association from taking over eight hotels,seven of which are operated as Embassy Suites brand hotels. Theeighth hotel, located in El Paso, Texas, was previously operatedas am Embassy Suites hotel, but lost its franchise agreement.The eight hotels were pledged by the Debtors as collateral for theloans with U.S. Bank.

According to http://www.wcghotels.com/Santa Monica-based Windsor Capital owns and/or operates 23 branded hotels in 11 states acrossthe U.S. Windsor Capital is the largest private owner andoperator of Embassy Suites hotels.

In the case U.S. Bank vs. Nesbitt Bellevue Property LLC, et al.(S.D.N.Y. 12 Civ. 423), U.S. Bank obtained approval from thedistrict judge in June to name Alan Tantleff of FTI Consulting,Inc., as receiver for:

The receiver obtained district court permission to engage CrescentHotels and Resorts LLC to manage the eight hotels. But before Mr.Adam could take physical possession of the properties and takecontrol of the Hotels, the eight borrowers filed Chapter 11petitions (Bankr. C.D. Calif. Lead Case No. 12-12883) on July 31,2012, in Santa Barbara, California.

U.S. Bank National Association, as Trustee and Successor inInterest to Bank of America, N.A., as Trustee for RegisteredHolders of GS Mortgage Securities Corporation II, CommercialMortgage Passthrough Certificates, Series 2006-GG6, acting by andthrough Torchlight Loan Services, LLC, as special servicer, arerepresented in the case by David Weinstein, Esq., and Lawrence P.Gottesman, Esq., at Bryan Cave LLP.

On Sept. 5, 2012, the Debtors filed with the Court their schedulesof assets and liabilities. Nesbitt Portland scheduled $29.4million in assets and $192.3 million in liabilities. NesbittPortland's hotel property is valued at $27.19 million, and securesa $191.9 million debt to U.S. Bank.

According to the U.S. Trustee, the agreement by the parties doesnot conform with the Bankruptcy Code, which provides for theappointment of a Chapter 11 trustee when a manager of a debtor-in-possession is unable or unwilling to continue in that role.Moreover, the Debtors have settled with U.S. Bank by proposing tohire a CRO who is essentially not disinterested, but is answerableto U.S. Bank. The U.S. Trustee also noted that the terms of theproposed engagement of the CRO are unreasonable and include bothunjustified compensation and inappropriate indemnification.

The U.S. Trustee is represented by Brian D. Fittipaldi, Esq.

On June 10, U.S. Bank National Association -- as successor ininterest to Bank of America, N.A., as trustee for the registeredholders of GS Mortgage Securities Corporation II, CommercialMortgage Pass-Through Certificates, Series 2006-GG6 -- requestedthat the Court overrule the objection filed by the Office of theU.S. Trustee, and grant the CRO application. The secured lenderhas a claim against the Debtors in the approximate amount of$193,396,857.

About Nesbitt Portland Property et al.

Windsor Capital Group Inc. CEO Patrick M. Nesbitt sent hotel-companies to Chapter 11 bankruptcy to stop a receiver named byU.S. Bank National Association from taking over eight hotels,seven of which are operated as Embassy Suites brand hotels. Theeighth hotel, located in El Paso, Texas, was previously operatedas am Embassy Suites hotel, but lost its franchise agreement.The eight hotels were pledged by the Debtors as collateral for theloans with U.S. Bank.

According to http://www.wcghotels.com/Santa Monica-based Windsor Capital owns and/or operates 23 branded hotels in 11 states acrossthe U.S. Windsor Capital is the largest private owner andoperator of Embassy Suites hotels.

In the case U.S. Bank vs. Nesbitt Bellevue Property LLC, et al.(S.D.N.Y. 12 Civ. 423), U.S. Bank obtained approval from thedistrict judge in June to name Alan Tantleff of FTI Consulting,Inc., as receiver for:

The receiver obtained district court permission to engage CrescentHotels and Resorts LLC to manage the eight hotels. But before Mr.Adam could take physical possession of the properties and takecontrol of the Hotels, the eight borrowers filed Chapter 11petitions (Bankr. C.D. Calif. Lead Case No. 12-12883) on July 31,2012, in Santa Barbara, California.

U.S. Bank National Association, as Trustee and Successor inInterest to Bank of America, N.A., as Trustee for RegisteredHolders of GS Mortgage Securities Corporation II, CommercialMortgage Passthrough Certificates, Series 2006-GG6, acting by andthrough Torchlight Loan Services, LLC, as special servicer, arerepresented in the case by David Weinstein, Esq., and Lawrence P.Gottesman, Esq., at Bryan Cave LLP.

On Sept. 5, 2012, the Debtors filed with the Court their schedulesof assets and liabilities. Nesbitt Portland scheduled $29.4million in assets and $192.3 million in liabilities. NesbittPortland's hotel property is valued at $27.19 million, and securesa $191.9 million debt to U.S. Bank.

NEW ENERGY: Proposes Liquidation Plan With Committee----------------------------------------------------New Energy Corp. and the Official Committee of Unsecured Creditorslast month delivered to the Bankruptcy Court a DisclosureStatement explaining a proposed Plan of Liquidation for theDebtor. The Plan is dated June 6, 2013.

According to the Disclosure Statement, the Plan will be fundedthrough the collection and liquidation of the remaining assets ofthe Debtor into cash. The Plan also creates a Liquidating Trust.The Debtor's estate will contribute the remaining assets to theLiquidating Trust for the benefit of creditors of the Debtor.

The Plan also incorporates a settlement which resulted fromnegotiations between and among the Debtor and certain key creditorconstituents in the case, including the Committee and the Debtor'sprepetition senior lender, the U.S. Department of Energy.

Under the terms of the Plan Settlement, the Prepetition SeniorLender and the Prepetition Junior Lenders will provide cash, in anamount not to exceed $75,000, to fund the Liquidating Trust andthe Prepetition Junior Lenders will reduce their pro rata share ofthe proceeds of the remaining assets.

The Debtor's ethanol facility is the first large-scale Greenfieldethanol plant constructed in the U.S. and is capable of producing100 million gallons of ethanol per year. The Debtors has operatedcontinuously, without interruption since 1984. The Debtor'soperations generated over $280 million in revenue in 2011.At historical production rates, the Company employs 85 to 90people to run operations, power the plant and to administer thebusiness operations of the Debtor.

Under the Plan, the $220 million in prepetition 9.50% SeniorSecured Notes due 2014 plus accrued interest will be replaced withnew 9.50% Senior Secured Notes, which will pay cash interest andfully amortize by May 2017, the report related. This provides fora 95% to 100% recovery rate.

The new notes assign additional rights and protections to the newnoteholders including a pledge of and assignment of the votingrights of 100% of the shares of the Debtor, the right to forecloseon 100% of the shares and related economic and/or voting rightsupon the event of a payment default on the New Notes, and variousimprovements in New Note amortizations and prepayment terms, thereport said.

The Court confirmed the Plan on May 30, 2013.

About Newland International

Newland International Properties Corp., a unit of Panama-basedOcean Point Development Corp. that developed luxury hotel andcondominium known as the "Trump Ocean Club International Hotel &Tower," located in Panama City, Panama, has sought Chapter 11protection in New York with a bankruptcy exit plan that wouldfurther restructure $220 million secured notes used to finance theproject.

Newland, which filed the bankruptcy petition (Bankr. S.D.N.Y. CaseNo. 13-11396) in Manhattan on April 30, 2012, said the Trump OceanClub is a multi-use 69-floor luxury tower overlooking the PacificOcean, with luxury condominium residences, a world-class hotelcondominium, a limited number of offices and premier leisureamenities. The Trump Ocean Club is located on the Punta PacificaPeninsula -- one of the most exclusive neighborhoods in PanamaCity.

The Company has a significant land position of 130,000 net acresin New York State with certified 2C contingent resources of 951MMBOE as of June 30, 2012.

NORTEL NETWORKS: Takes Back Bid to Incentivize Key Personnel------------------------------------------------------------Nortel Networks Inc. and its debtor affiliates notified the U.S.Bankruptcy Court for the District of Delaware that are withdrew,without prejudice, their motion for an order authorizing them to(A) grant awards pursuant to the Nortel Networks' incentive plan,and (B) enter into individual special incentive payment agreementswith certain key personnel. The 2013 incentive awards paid willnot exceed approximately $1,081,915.

Headquartered in Ontario, Canada, Nortel Networks Corporation andits various affiliated entities provided next-generationtechnologies, for both service provider and enterprise networks,support multimedia and business-critical applications. Nortel didbusiness in more than 150 countries around the world. NortelNetworks Limited was the principal direct operating subsidiary ofNortel Networks Corporation.

On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parentNortel Networks Corporation, NNI's direct corporate parent NortelNetworks Limited and certain of their Canadian affiliatescommenced a proceeding with the Ontario Superior Court of Justiceunder the Companies' Creditors Arrangement Act (Canada) seekingrelief from their creditors. Ernst & Young was appointed to serveas monitor and foreign representative of the Canadian NortelGroup. That same day, the Monitor sought recognition of the CCAAProceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No.09-10164) under Chapter 15 of the U.S. Bankruptcy Code.

That same day, NNI and certain of its affiliated U.S. entitiesfiled voluntary petitions for relief under Chapter 11 of the U.S.Bankruptcy Code (Bankr. D. Del. Case No. 09-10138).

In addition, the High Court of England and Wales placed 19 ofNNI's European affiliates into administration under the control ofindividuals from Ernst & Young LLP. Other Nortel affiliates havecommenced and in the future may commence additional creditorprotection, insolvency and dissolution proceedings around theworld.

On May 28, 2009, at the request of administrators, the CommercialCourt of Versailles, France, ordered the commencement of secondaryproceedings in respect of Nortel Networks S.A. On June 8, 2009,Nortel Networks UK Limited filed petitions in U.S. BankruptcyCourt for recognition of the English Proceedings as foreign mainproceedings under Chapter 15.

An Official Committee of Retired Employees and the OfficialCommittee of Long-Term Disability Participants tapped Alvarez &Marsal Healthcare Industry Group as financial advisor. TheRetiree Committee is represented by McCarter & English LLP asDelaware counsel, and Togut Segal & Segal serves as the RetireeCommittee. The Committee retained Alvarez & Marsal HealthcareIndustry Group as financial advisor, and Kurtzman CarsonConsultants LLC as its communications agent.

Several entities, particularly, Nortel Government SolutionsIncorporated and Nortel Networks (CALA) Inc., have materialoperations and are not part of the bankruptcy proceedings.

As of Sept. 30, 2008, Nortel Networks Corp. reported consolidatedassets of $11.6 billion and consolidated liabilities of $11.8billion. The Nortel Companies' U.S. businesses are primarilyconducted through Nortel Networks Inc., which is the parent ofmajority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNIhad assets of about $9 billion and liabilities of $3.2 billion,which do not include NNI's guarantee of some or all of the NortelCompanies' about $4.2 billion of unsecured public debt.

Since the commencement of the various insolvency proceedings,Nortel has sold its business units and other assets to variouspurchasers. Nortel has collected roughly $9 billion fordistribution to creditors. Of the total, $4.5 billion came fromthe sale of Nortel's patent portfolio to Rockstar Bidco, aconsortium consisting of Apple Inc., EMC Corporation,Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research InMotion Limited, and Sony Corporation. The consortium defeated a$900 million stalking horse bid by Google Inc. at an auction. Thedeal closed in July 2011.

Nortel has filed a proposed plan of liquidation in the U.S.Bankruptcy Court. The Plan generally provides for full payment onsecured claims with other distributions going in accordance withthe priorities in bankruptcy law.

OCD LLC: Creditors Have Until July 15 to File Proofs of Claim-------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkestablished July 15, 2013, as the deadline for any individual orentity to file proofs of claim against OCD, LLC.

OMTRON USA: Has Until Aug. 16 to File Chapter 11 Plan-----------------------------------------------------The U.S. Bankruptcy Court for the Middle District of NorthCarolina extended Omtron USA, LLC's exclusive periods to file aproposed Chapter 11 Plan until Aug. 16, 2013, and solicitacceptances for that Plan until Oct. 14, respectively.

As reported in the Troubled Company Reporter on June 5, 2013, theDebtor said Duff & Phelps, the Debtor's investment bankers, hascontinued in its efforts to sell substantially all of the assetsof the Debtor as a "going concern", which efforts have resulted ina motion being filed with the Court on May 3, 2013, to approveprocedures relating to bidding and the process for the sale andauction of the assets.

"It is anticipated that the auction as contemplated by the salemotion won't take place until July 15, 2013. The Debtor will notbe able to finalize a plan until such time as the auction has beencompleted. The requested relief will further extend the ExclusivePeriods to allow for the finalization of the sale process,including the review of various bids that are received, and thecompletion of an auction of the assets and approval of thesuccessful bidder as the purchaser of the assets. The protectionof the exclusive periods will allow the Debtor to focus onmaximizing recoveries for creditors and negotiating a proper winddown of the estate, without the distraction of any competingplans," Christine L. Myatt, Esq., at Nexsen Pruet, the attorneyfor the Debtor, states.

About Omtron USA

Omtron USA bought poultry producer Townsends Inc. out ofbankruptcy in 2011, shut down operations in later that year,and filed its own Chapter 11 petition (Bankr. D. Del. Case No.12-13076) on Nov. 9, 2012, in Delaware. On Dec. 21, 2012, theDelaware Court entered its order granting the transfer of theDebtor's case to U.S. Bankruptcy Court for the Middle District ofNorth Carolina, under Case No. 12-81931.

Omtron paid $24.9 million in February 2011 for the North Carolinaoperations belonging to Townsends Inc.

The three-member Official Committee of Unsecured Creditors tappedto retain Lowenstein Sandler LLP and Womble Carlyle Sandridge &Rice, LLP, as its counsel and CohnReznick, LLP, as its financialadvisor.

OPPENHEIMER PARTNERS: July 23 Hearing on CBIZ MHM Employment------------------------------------------------------------The U.S. Bankruptcy Court for the District of Arizona will convenea hearing on July 23, 2013, at 11 a.m., to consider the request ofOppenheimer Partners Properties, LLP, to employ the accounting andconsulting firm of CBIZ MHM, LLC as financial advisor.

According to the Debtor, most of the work performed by CBIZ forthe Debtor was by Christine Ulibarri. Ms. Ulibarri providedreasonable and necessary services for the Debtor in the matterthat had a significant impact on the Chapter 11 case.

The Debtor seeks to pay CBIZ for the services that Ms. Ulibarriprovided in the 87 days before the employment application wasfiled on Feb. 27, 2012, and after the Petition Date on Dec. 2,2011.

About Oppenheimer Partners Properties

Oppenheimer Partners Properties LLP owns and operates a 184-unitresidential apartment complex in Phoenix, Arizona. Oppenheimerpurchased the property in June 2007 for $12 million through acombination of cash and a construction loan totaling $12.4million. Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D.Ariz. Case No. 11-33139) on Dec. 2, 2011. Judge Sarah SharerCurley presides over the case. Gordon Silver's Robert C.Warnicke, Esq., serves as the Debtor's counsel. In its petition,the Debtor estimated $10 million to $50 million in assets anddebts. The petition was signed by Eric Hamburger, managingpartner.

The Plan filed in the case provides that the exit financingrequirements under the plan will be fully funded by the Debtor'scash on hand. The Debtor anticipates having $338,000 cash on handby the Effective date.

Orchard Supply will hold an auction Aug. 14. The Court will holda sale hearing Aug. 20 to approve the successful bid. Competingbids are due Aug. 9. Those offers, the Dow Jones report notes,must exceed Lowe's bid by $9 million. That covers $7 million inbidder protections payable to Lowe's if it loses, plus a $2million overbid.

To motivate its leaders to secure the best possible offer for itsstores, Dow Jones relates Orchard Supply will return to bankruptcycourt next week for approval of an executive bonus plan. Four ofOrchard Supply's top executives, including President and ChiefExecutive Mark Baker and Chief Financial Officer Chris Newman,would be eligible to receive as much as $3.1 million if theultimate sale price tops $300 million.

The report notes a sale of at least $200 million would bring innearly $2.2 million in bonuses for the executives under theproposed plan. Lowe's has committed to cover 50% of the bonuspayments if it emerges as the winning bidder at next month'sauction.

Also on the agenda for next week's hearing is a $176.3 millionbankruptcy loan from lenders led by Wells Fargo Bank, Dow Jonesreports. Orchard Supply received court approval to access some ofthe financing shortly after its bankruptcy filing but must returnto court to draw the full amount.

About Orchard Supply

San Jose, Calif.-based Orchard Supply Hardware Stores Corporationoperates neighborhood hardware and garden stores focused on paint,repair and the backyard. It was spun off from Sears HoldingsCorp. in 2012.

Orchard Supply and two affiliates sought Chapter 11 protection(Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate arestructuring of the company's balance sheet and a sale of itsassets for $205 million in cash to Lowe's Companies, Inc., absenthigher and better offers. In addition to the $205 million cash,Lowe's has agreed to assume payables owed to nearly all ofOrchard's supplier partners.

Bankruptcy Judge Christopher S. Sontchi oversees the case.Michael W. Fox signed the petitions as senior vice president andgeneral counsel. The Debtors disclosed total assets of$441,028,000 and total debts of $480,144,000.

The U.S. Trustee for Region 3 has appointed five members to theofficial committee of unsecured creditors in the case.

ORMET CORP: Utility Wants Smelter Kept From Altering Energy Deal----------------------------------------------------------------Jamie Santo of BankruptcyLaw360 reported that an Ohio utilitylaunched a suit in Delaware bankruptcy court seeking to blockaluminum smelter Ormet Corp.'s bid to have a state commissionmodify its power agreement before transferring it to its privateequity buyer.

According to the report, Ohio Power Co., doing business as AEPOhio, sought a preliminary injunction stopping Ormet from goingforward with a bid to have the Public Utilities Commission of Ohioamend its energy agreement until the Delaware court rules on AEP'sMay 8 objection to the contract's assignment and assumption.

OZ GAS: Hearing on Amended Plan Outline Continued to Aug. 8-----------------------------------------------------------Upon a consent motion filed by RBS Citizens, N.A., dba CharterOne, for continuance of the hearing to approve the disclosurestatement explaining the amended Chapter 11 plan for John D. Oiland Gas Company, the Bankruptcy Court ruled that the hearing toapprove the Disclosure Statement is continued from July 11, 2013until August 8, 2013 at 9:30 a.m.

The Court previously continued that hearing to July 11.

As reported by the Troubled Company Reporter on June 28, 2013, RBSCitizens, N.A., dba Charter One, objected to the approval ofthe Disclosure Statement explaining the Debtor's First AmendedPlan of Reorganization dated April 22, 2013. According to RBS,the proposed treatment of its claim still is not fair andequitable. RBS said the Plan cannot be confirmed over itsobjection. RBS also said the Debtors do not have the supportof other creditors for their proposed Plans, and the bankruptcyestates clearly cannot bear the cost of a contested confirmationprocess regarding non-confirmable Plans.

2. the Plans impermissibly artificially impair the claims of general unsecured creditors; and

3. the revised financial projections and related data do not support a feasibility finding.

According to the Disclosure Statement, the Debtor's First AmendedPlan of Reorganization dated April 22, 2013, provides thatPriority Claims will receive payment in full within 60 days of theEffective Date.

The Debtor will make monthly interest payments to RBS CitizensN.A. (Class 2) doing business as Charter One, on the allowedamount of the claim over a five-year term with interest at thenon-default contract rate.

Holders of Allowed Class 3 claims will be re-amortized to theremaining length of the contract, plus 60 months, with interestaccruing at the contract rate.

Allowed General Unsecured Claims (Class 4) -- unless theDebtor and the holder of any such allowed claim agree to adifferent treatment, each holder of an Allowed Class 4 Claim willreceive 90 percent of its claim, paid in cash, within one year ofthe Effective Date.

The Equity Interest (Class 5) owners will retain their interestsin the Debtor.

Mentor, Ohio-based John D. Oil & Gas Co., is in the business ofacquiring, exploring, developing, and producing oil and naturalgas in Northeast Ohio. The Company has 58 producing wells. TheCompany also has one self storage facility located in Painesville,Ohio. The self-storage facility is operated through a partnershipagreement between Liberty Self-Stor Ltd. and the Company.

On Nov. 21, 2011, at the request of the lender RBS Citizens, N.A.,dba Charter One, a receiver was appointed for all three corporateDebtors, in the United States District Court for the NorthernDistrict of Ohio at case No. 11-cv-2089-CAB. District JudgeChristopher A. Boyko issued an order appointing Mark E. Dottore asreceiver. The Receivership Order was appealed to the SixthCircuit Court of Appeals on Dec. 19, 2011 and the appeal iscurrently pending.

Judge Thomas P. Agresti oversees the Chapter 11 cases. Robert S.Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel tothe Debtors. Each of Great Plains and Oz Gas estimated $10million to $50 million in assets and debts. John D. Oil's balancesheet at Sept. 30, 2011, showed $8.12 million in total assets,$12.92 million in total liabilities and a $4.79 million totaldeficit. The petitions were signed by Richard M. Osborne, CEO.

The United States Trustee said a committee under 11 U.S.C. Sec.1102 has not been appointed because no unsecured creditorresponded to the U.S. Trustee's communication for service on thecommittee.

PARADISE VALLEY: Can Employ John Wicks as Real Estate Appraiser---------------------------------------------------------------The U.S. Bankruptcy Court for the District of Montana authorizedParadise Valley Holdings LLC last month to employ John "Jack"Wicks & Associates LLC as real estate appraiser.

To the best of the Debtor's knowledge, John Wicks has noconnection with the creditors, or any other party in interest, ortheir respective attorneys and accountants, the United StatesTrustee, or any person employed in the office of the United StatesTrustee, and is a "disinterested person" as defined in 11 U.S.C.101(14).

John Wicks will charge $200.00 per hour for his professionalservices.

The application was submitted by James A. Patten, Esq., of Patten,Perterman, Bekkedahl & Green, Attorney for the Debtor.

About Paradise Valley Holdings LLC

Paradise Valley Holdings LLC filed a Chapter 11 petition (Bankr.D. Mont. Case No. 12-61585) in Butte, Montana on Sept. 28, 2012.Paradise Valley, also known as Bullis Creek Ranch, disclosed$14.2 million in total assets and $13.1 million in totalliabilities. The Debtor owns properties in Park County, worth$14.0 million, and secures a $12.0 million debt to American Bank.The Debtor disclosed that part of the secured claims against theproperty is a judgment lien in the amount of $250,000 held by theMuseum of the Rockies Inc. resulting from a lawsuit against thedebtor for breach of contract. A copy of the schedules isavailable at http://bankrupt.com/misc/mtb12-61585.pdf

According to the report, U.S. Bankruptcy Judge Kathy A. Surratt-States in St. Louis denied the motion. The coal producer wantedthe creditor list redacted so the names and address of 41,000individual creditors wouldn't be publicly available. Theindividual creditors are mostly present or former employees whosewages, benefits or health insurance are being impaired bybankruptcy.

The report notes that although the judge authorized Patriot tomodify wages, benefits and retirement health insurance, thecompany and the union are continuing to negotiate. In themeantime, Patriot didn't implement all the changes authorized bythe court.

About Patriot Coal

St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producerand marketer of coal in the eastern United States, with 13 activemining complexes in Appalachia and the Illinois Basin. TheCompany ships to domestic and international electricitygenerators, industrial users and metallurgical coal customers, andcontrols roughly 1.9 billion tons of proven and probable coalreserves.

Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.Lead Case No. 12-12900) on July 9, 2012. Patriot said it had$3.57 billion of assets and $3.07 billion of debts, and hasarranged $802 million of financing to continue operations duringthe reorganization.

Davis Polk & Wardwell LLP is serving as legal advisor, BlackstoneAdvisory Partners LP is serving as financial advisor, and APServices, LLC is providing interim management services to Patriotin connection with the reorganization. Ted Stenger, a ManagingDirector at AlixPartners LLP, the parent company of AP Services,has been named Chief Restructuring Officer of Patriot, reportingto the Chairman and CEO. GCG, Inc. serves as claims and noticingagent.

On Nov. 27, 2012, the New York bankruptcy judge moved Patriot'sbankruptcy case to St. Louis. The order formally sending thereorganization to Missouri was signed December 19 by thebankruptcy judge. The New York Judge in a Jan. 23, 2013 orderdenied motions to transfer the venue to the U.S. Bankruptcy Courtfor the Southern District of West Virginia.

According to the report, the plan is based on a settlement withsenior convertible noteholders approved by the bankruptcy court inJune. Incorporated into the plan, it pays the lenders $13.3million, for a total recovery of $19 million given $5.7 millionalready received. If the company generates cash beyond $4.48million, the lenders will receive 60 percent of the excess.

The report notes that unsecured creditors receive nothing from theplan. Pipeline processed credit cards and sold the business inMarch to Calpian Inc. for $9.75 million.

The Debtor estimated assets of $1 million to $10 million and debtsof $50 million to $100 million. Pipeline, which sought bankruptcytogether with affiliates, owes $66.6 million in principal andinterest to first-lien creditors who have liens on all assets.

In its schedules, Pipeline Data disclosed $4,491,699 in totalassets and $61,595,942 in total liabilities.

After the bankruptcy court in Delaware approved selling thebusiness in January 2013 to Applied Merchant Systems West CoastInc. for $9.85 million, the deal fell through. The court laterauthorized the second-place bidder, Calpian Inc., to buy theoperation for $9.75 million. The sale was completed on March 15.

PROMMIS HOLDINGS: NTS Files Schedules of Assets and Liabilities---------------------------------------------------------------Nationwide Trustee Services, Inc., an affiliate of PrommisHoldings, LLC, filed with the U.S. Bankruptcy Court for theDistrict of Delaware its schedules of assets and liabilities,disclosing:

The petition estimated the lead Debtors' assets to range between$10 million and $50 million and the lead Debtor's debts between$50 million and $100 million. The petitions were signed byCharles T. Piper, chief executive officer.

The U.S. Trustee for Region 3 appointed three creditors to servein the Official Committee of Unsecured Creditors.

PROMMIS HOLDINGS: NTS Virginia Files Schedules----------------------------------------------Nationwide Trustee Services of Virginia, Inc., an affiliate ofPrommis Holdings, LLC, filed with the U.S. Bankruptcy Court forthe District of Delaware its schedules of assets and liabilities,disclosing:

The petition estimated the lead Debtors' assets to range between$10 million and $50 million and the lead Debtor's debts between$50 million and $100 million. The petitions were signed byCharles T. Piper, chief executive officer.

The U.S. Trustee for Region 3 appointed three creditors to servein the Official Committee of Unsecured Creditors.

PROMMIS HOLDINGS: Statewide Tax Alabama Files Schedules-------------------------------------------------------Statewide Tax and Title Services of Alabama LLC, an affiliate ofPrommis Holdings, LLC, filed with the U.S. Bankruptcy Court forthe District of Delaware its schedules of assets and liabilities,disclosing:

The petition estimated the lead Debtors' assets to range between$10 million and $50 million and the lead Debtor's debts between$50 million and $100 million. The petitions were signed byCharles T. Piper, chief executive officer.

The U.S. Trustee for Region 3 appointed three creditors to servein the Official Committee of Unsecured Creditors.

PROMMIS HOLDINGS: Statewide Publishing Files Schedules------------------------------------------------------Statewide Publishing Services LLC, an affiliate of PrommisHoldings, LLC, filed with the U.S. Bankruptcy Court for theDistrict of Delaware its schedules of assets and liabilities,disclosing:

The petition estimated the lead Debtors' assets to range between$10 million and $50 million and the lead Debtor's debts between$50 million and $100 million. The petitions were signed byCharles T. Piper, chief executive officer.

The U.S. Trustee for Region 3 appointed three creditors to servein the Official Committee of Unsecured Creditors.

The Debtor intends to sell or refinance its property prior to theexpiration of a deferral period of three years. Postpetition andduring the Deferral Period, interest, attorneys' fees and othercharges will continue to accrue on the Zions Bank and Heise Loans.

The Plan designates four classes of claims. The Zions Bankallowed secured claim (Class 1) in the amount of $1,319,909 andthe F. Heise Land & Livestock Company allowed secured claim (Class2) of $809,092 will be paid in full in cash no later than theconclusion of the Deferral Period. Allowed unsecured claims(Class 3) will be paid on or before the conclusion of the deferralperiod. Holders of membership interests (Class 4) will retaintheir interests in the Reorganized Debtor, but will receive nodistribution until Classes 1 through 3 are paid in full.

Appearances during the hearing on the confirmation of the Planwere made by Alan R. Smith, Esq., on behalf of the Debtor; JeffreyA. Cogan, Esq., on behalf of H.H. Land & Cattle Company; and JamesJ. Ream, Esq., on behalf of Maurice Klabunde, Charles and RomowaTow, and Ernest J. Turner.

About Rainbow Land

Rainbow Land & Cattle Company, LLC, is the owner of approximately466 acres of undeveloped real property located in Caliente,Nevada, and approximately 133 acre feet of water appurtenant tothe property. The Property was financed by Zions First NationalBank at the time of the purchase.

Rainbow Land filed a Chapter 11 petition (Bankr. D. Nev. Case No.12-14009) on April 4, 2012. It scheduled $15.43 million in assetsand $2.50 million in liabilities. The Debtor owns approximately579.48 undeveloped acres of real property located in Caliente,Nevada, along with 466.79 acre feet of water rights. The Debtoris owned by John Huston, 45.2381%; Jan J. Cole, 45.2381%; andClarence Burr, 9.52381%.

The Debtor, which owns commercial and residential rentalproperties in Craven and Carteret Counties, North Carolina,disclosed $11.7 million in total assets and $7.70 million in totalliabilities in its schedules.

RESIDENTIAL CAPITAL: Files Plan and Targets Nov. 10 Confirmation----------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Residential Capital LLC filed the formal Chapter 11reorganization plan on July 3 to implement the global settlementapproved on June 26 by the U.S. Bankruptcy Court in New York.

According to the report, by paying $2.1 billion, ResCap's parentAlly Financial Inc. will buy a release from claims for defectivemortgage-backed securities. The 165-page disclosure statementexplains the 110-page plan anchored by ResCap's settlement.

* ResCap's $2.15 billion in general unsecured claims will receive a distribution of 36.3 percent, according to the disclosure statement.

* Unsecured creditors with $2 billion in claims against the "GMACM" companies are to have a 30.1 percent recovery.

ResCap is arranging an Aug. 21 hearing for approval of thedisclosure statement. Assuming there are no delays, theconfirmation hearing for approval of the plan will take placeNov. 6. The last day for creditors to vote will be Oct. 10.

The report notes that approving the plan isn't a foregoneconclusion. There were numerous objections to approval of theAlly settlement. Although the bankruptcy judge said they raised"difficult issues," he said they would properly come before thecourt at the Nov. 6 confirmation hearing. ResCap can use theintervening weeks to iron out as many objections as possible.

The report says that the agreement where creditors committhemselves to supporting the plan calls for implementation of thereorganization by Dec. 15.

Neither Ally Financial nor Ally Bank is included in the bankruptcyfilings.

ResCap, one of the country's largest mortgage originators andservicers, was sent to Chapter 11 with 50 subsidiaries amid"continuing industry challenges, rising litigation costs andclaims, and regulatory uncertainty," according to a companystatement.

ResCap disclosed $15.68 billion in assets and $15.28 billion inliabilities as of March 31, 2012.

Neither Ally Financial nor Ally Bank is included in the bankruptcyfilings.

ResCap, one of the country's largest mortgage originators andservicers, was sent to Chapter 11 with 50 subsidiaries amid"continuing industry challenges, rising litigation costs andclaims, and regulatory uncertainty," according to a companystatement.

ResCap disclosed $15.68 billion in assets and $15.28 billion inliabilities as of March 31, 2012.

RG STEEL: Seeks Approval to Sell Asset to Moose One for $837,700----------------------------------------------------------------RG Steel Wheeling LLC seeks approval from U.S. Bankruptcy JudgeKevin Carey to sell a real property in Mesa County, Colorado, toMoose One LLC for $837,700. The steel maker also seeks a rulingentitling the buyer to, among other things, the benefits andprotections afforded by Section 363(m) of the Bankruptcy Code.

About RG Steel

RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmakingcapacity of 7.5 million tons. It was formed in March 2011following the purchase of three steel facilities located inSparrows Point, Maryland; Wheeling, West Virginia and Warren,Ohio, from entities related to Severstal US Holdings LLC. RGSteel also owns finishing facilities in Yorkville and MartinsFerry, Ohio. It also owned Wheeling Corrugating Company and has a50% ownership in Mountain State Carbon and Ohio Coatings Company.

RG Steel along with affiliates, including WP Steel Venture LLC,sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-11661) on May 31, 2012. Bankruptcy was precipitated by liquidityshortfall and a dispute with Mountain State Carbon, LLC, and aSeverstal affiliate, that restricted the shipment of coke used inthe steel production process.

The Debtors estimated assets and debts in excess of $1 billion.As of the bankruptcy filing, the Debtors owe (i) $440 million,including $16.9 million in outstanding letters of credit, tosenior lenders led by Wells Fargo Capital Finance, LLC, asadministrative agent, (ii) $218.7 million to junior lenders, ledby Cerberus Business Finance, LLC, as agent, (iii) $130.5 millionon account of a subordinated promissory note issued by majorityowner The Renco Group, Inc., and (iv) $100 million on a securedpromissory note issued by Severstal.

The Debtor has sold off the principal plants. The sale of theWheeling Corrugating division to Nucor Corp. brought in $7million. That plant in Sparrows Point, Maryland, fetched thehighest price, $72.5 million. CJ Betters Enterprises Inc. paid$16 million for the Ohio plant.

RITE AID: $419.2 Million of 2017 Senior Notes Validly Tendered--------------------------------------------------------------Rite Aid Corporation's cash tender offer for any and all of itsoutstanding 7.5 percent senior secured notes due 2017 expired atmidnight, Eastern Time, on July 5, 2013. As of the ExpirationDate, approximately $419.2 million aggregate principal amount ofthe 2017 Notes had been validly tendered and not validlywithdrawn, representing approximately 83.85 percent of theoutstanding 2017 Notes. All those 2017 Notes had been validlytendered on or prior to the consent payment deadline, which was5:00 p.m., Eastern Time, on June 20, 2013, and were accepted forpurchase on June 21, 2013. The remaining $80.8 million aggregateprincipal amount of the 2017 Notes were called for redemption onJuly 22, 2013, and were satisfied and discharged by the Company onJuly 8, 2013.

About Rite Aid Corp.

Drugstore chain Rite Aid Corporation (NYSE: RAD) --http://www.riteaid.com/-- based in Camp Hill, Pennsylvania, is one of the nation's leading drugstore chains with 4,626 stores in31 states and the District of Columbia.

Rite Aid disclosed net income of $118.10 million on $25.39 billionof revenue for the year ended March 2, 2013, as compared with anet loss of $368.57 million on $26.12 billion of revenue for theyear ended March 2, 2012. As of June 1, 2013, the Company had$6.94 billion in total assets, $9.30 billion in total liabilitiesand a $2.35 billion total stockholders' deficit.

* * *

As reported by the TCR on March 1, 2013, Moody's Investors Serviceupgraded Rite Aid Corporation's Corporate Family Rating to B3 fromCaa1 and Probability of Default Rating to B3-PD from Caa1-PD. Atthe same time, the Speculative Grade Liquidity rating was revisedto SGL-2 from SGL-3. This rating action concludes the review forupgrade initiated on Feb. 4, 2013.

RIVIERA HOLDINGS: Losses Cues Moody's to Lower CFR to 'Caa3'------------------------------------------------------------Moody's Investors Service downgraded Riviera HoldingsCorporation's ratings, including its Corporate Family Rating toCaa3 from Caa2 and its Probability of Default Rating to Caa3-PDfrom Caa2-PD. At the same time, Moody's downgraded Riviera's firstlien term loan and revolver to Caa2 from Caa1, its second lienterm loan to Ca from Caa3 and its Speculative Grade Liquidityrating to SGL-4 from SGL-3. The rating outlook is negative.

Ratings Rationale:

The downgrade reflects Moody's view that Riviera's capitalstructure is unsustainable given growing operating losses and itsinability to cover debt service and capex needs given limitedavailable cash balances. Additionally, although the companycontinues to pay required interest on time, it remains intechnical default of financial covenants.

Riviera has restricted cash balances ($61 million at March 31,2013) from the sale of its Black Hawk property in April 2012. Evenif the company receives approval from its lenders to userestricted cash to fund operating needs, the company will not beable to service the remaining debt without material improvement inthe Riviera Las Vegas' performance, and may again seek torestructure.

The negative rating outlook considers Riviera's high risk ofpayment default as well as Moody's view that operating cash flowwill not rebound materially given the properties age and locationas well as slow operating conditions in Las Vegas. Ratings couldbe downgraded if Riviera does not gain access to its restrictedcash balances to fund its operating losses and debt service needs.Ratings could be upgraded if the company can cover debt serviceand interest expense from operations.

Independent of any change in Rivera's Corporate Family Rating, theratings on the company's Series A term loan and revolver or SeriesB term loan could change depending on the amount of debt thecompany ultimately repays with the proceeds from the sale of theBlack Hawk casino.

Ratings downgraded:

Corporate Family Rating to Caa3 from Caa2

Probability of Default Rating to Caa3-PD from Caa2-PD

First lien Series A $10 million revolver due April 2016 to Caa2 (LGD 3, 32%) from Caa1 (LGD 3, 34%)

First lien Series A $50 million term loan due April 2016 to Caa2 (LGD 3, 32%) from Caa1 (LGD 3, 34%)

Second Lien Series B (PIK) $28 million term loan due April 2016 to Ca (LGD 5, 83%) from Caa3 (LGD 5, 84%)

Speculative Grade Liquidity rating to SGL-4 from SGL-3

The principal methodology used in this rating was the GlobalGaming Industry Methodology published in December 2009. Othermethodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEApublished in June 2009.

As reported by the Troubled Company Reporter on April 2, 2013,Gail Brehm Geiger, Acting U.S. Trustee for Region 18, asked theBankruptcy Court to dismiss the Debtors' case because it has beenpending approximately 21 months, but no plan has been confirmed,causing unreasonable delay to the creditors. According to theU.S. Trustee, there is a continuing loss or diminution of theestate and the absence of a reasonable likelihood ofrehabilitation, as evidenced by the Debtor's own statements. TheDebtor's financial performance hasn't improved in the interveningmonths. Its January 2013 monthly operating report shows thatafter 20 months of post-petition operations, its ending cashbalance was $6,151.

The U.S. Trustee also said the Debtor has been unable toaccumulate any cash which it will need to operate and make planpayments. The Debtor doesn't have cash on hand to pay itsattorney fees, accounting fees and it hasn't set aside anymoney to pay the Unsecured Creditors' Committee attorney fees asordered by the Court. The Debtor's cash flow problems have causedit to accrue post-petition payroll tax liabilities, the Trusteestated.

The Court entered an order dismissing the Chapter 11 case onMay 9, 2013. The Court entered another order on May 28 closingthe case.

The Official Committee of Unsecured Creditors retained MayBrowning & May as its counsel.

ROGERS BANCSHARES: Little Rock Bank Being Sold to Investor Fund---------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that Rogers Bancshares Inc. from Little Rock, Arkansas, isthe latest bank holding company to file for Chapter 11 protectionwith a proposal to sell the bank subsidiary MetropolitanNational Bank and avoid a takeover by regulators.

According to the report, a fund affiliated with Dallas-basedprivate-equity investor Ford Financial Fund LP signed a contractto buy 45-branch Metropolitan for $16 million and supply capitalrequired by regulators. Rogers filed for Chapter 11 relief(Bankr. E.D. Ark. Case No. 13-bk-13838) on July 5 in Little Rock.Rogers owes $41.3 million on three issues of junior subordinateddebentures and $39.6 million on four issues of preferred stock.

The report discloses that the U.S. Treasury owns $26.3 million ofthe preferred stock in return for assistance in the Troubled AssetRelief Program. There will be an auction where competing bids canbe submitted. The bank has $888 million in deposits, according tothe website. There is no debt owing to trade suppliers.

SAN BERNARDINO: Sees No Fact Disputes on Right to Bankruptcy------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that San Bernardino, California, facing a hearing in lateAugust on the question of whether the city is eligible for Chapter9 municipal bankruptcy, filed papers on July 5 telling thebankruptcy judge there are no disputed facts and therefore no needfor a trial.

According to the report, San Bernardino filed papers called amotion for summary judgment, where the city must show there are nodisputes on the pivotal facts underpinning the right to be inChapter 9. The motion is set for hearing on Aug. 28. The citypoints out that only the San Bernardino Public EmployeesAssociation and the California Public Employees' Retirement Systemcontest the city isn't eligible for Chapter 9.

The report notes that the city's motion contends there has beencompliance with all state- and federal-law requirements for amunicipality's use of Chapter 9. If the bankruptcy judgeconcludes there are disputed facts, she must hold a trial and hearwitnesses before deciding if the city is eligible for Chapter 9.

The report relates that the employees' association and CalPers arescheduled to file opposition papers on Aug. 2. The bankruptcyjudge will hold a status conference on July 17 where she may usethe occasion to appoint a mediator. Unlike Chapter 11,municipalities must prove eligibility for Chapter 9 bankruptcy.

The report discloses that CalPers is opposing the city's use ofChapter 9 even though the city resumed making payments in July tothe state's public employees' retirement fund.

"We're spending millions of dollars in attorneys' fees fightingtheir motions, they're spending millions of dollars in theirretirees' money fighting these motions, we have three unionsspending their members' money because of these motions," said CityAttorney James F. Penman, referring to months of discussions aboutwhat evidence the city must produce to prove its eligibility, areport from The Sun said. "But the fact is, we don't believe thereare any issues in dispute any longer. The judge has said at leasttwice, perhaps more, that everyone agrees we're insolvent, andeach time CalPERS has sat there and did not respond to that."

Under California bankruptcy law, insolvency is one of fiverequirements to be eligible for Chapter 9 bankruptcy, with severalof those -- that the city is a municipality, for example -- beingcompletely uncontested, the report noted.

CalPERS' main objection, according to previous filings, is thatthe city hasn't met the requirement of having a desire to effect aplan to adjust its debts, the report related. Instead, theyargue, the bankruptcy filing may have been a delaying tactic orsomething else, and they should be given more access to documentsand officials to determine if that is the case.

About San Bernardino, Calif.

San Bernardino, California, filed an emergency petition formunicipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code(Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. SanBernardino, a city of about 210,000 residents roughly 65 miles(104 km) east of Los Angeles, estimated assets and debts of morethan $1 billion in the bare-bones bankruptcy petition.

The city council voted on July 10, 2012, to file for bankruptcy.The move lets San Bernardino bypass state-required mediation withcreditors and proceed directly to U.S. Bankruptcy Court.

The city is represented that Paul R. Glassman, Esq., at StradlingYocca Carlson & Rauth.

San Bernardino joined two other California cities in bankruptcy:Stockton, an agricultural center of 292,000 east of San Francisco,and Mammoth Lakes, a mountain resort town of 8,200 south ofYosemite National Park.

SCOOTER STORE: Holdings Files Schedules of Assets and Liabilities-----------------------------------------------------------------The Scooter Store Holdings, Inc., filed with the U.S. BankruptcyCourt for the District of Delaware its schedules of assets andliabilities, disclosing:

The Scooter Store is a supplier of power mobility solutions,including power wheelchairs, scooters, lifts, ramps, andaccessories. The Scooter Store's products and services providetoday's seniors and disabled persons potential alternatives toliving in nursing homes or other care facilities. Headquarteredin New Braunfels, Texas, the Scooter Store has a nationwidenetwork of distribution centers that service products owned orleased by the Company's customers. It has 57 distributioncenters in 41 states.

Scooter Store Holdings Inc., and 71 affiliates filed for Chapter11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) inWilmington. The closely held company listed assets of less than$10 million and debt of more than $50 million.

Affiliates of private equity firm Sun Capital Partners, based inBoca Raton, Florida, purchased a majority voting interest in thedebtors in 2011. Scooter Store is 66.8 percent owned by SunCapital Partners Inc., owed $40 million on a third lien. Inaddition to Sun's debt and $25 million on a second lien owing toCrystal Financial LLC, there is a $25 million first-lien revolvingcredit owing to CIT Healthcare LLC as agent. Crystal is providing$10 million in financing for bankruptcy.

SCOOTER STORE: St. Louis LLC Files Schedules of Assets & Debts--------------------------------------------------------------The Scooter Store - St. Louis, L.L.C. filed with the U.S.Bankruptcy Court for the District of Delaware its schedules ofassets and liabilities, disclosing:

The Scooter Store is a supplier of power mobility solutions,including power wheelchairs, scooters, lifts, ramps, andaccessories. The Scooter Store's products and services providetoday's seniors and disabled persons potential alternatives toliving in nursing homes or other care facilities. Headquarteredin New Braunfels, Texas, the Scooter Store has a nationwidenetwork of distribution centers that service products owned orleased by the Company's customers. It has 57 distributioncenters in 41 states.

Scooter Store Holdings Inc., and 71 affiliates filed for Chapter11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) inWilmington. The closely held company listed assets of less than$10 million and debt of more than $50 million.

Affiliates of private equity firm Sun Capital Partners, based inBoca Raton, Florida, purchased a majority voting interest in thedebtors in 2011. Scooter Store is 66.8 percent owned by SunCapital Partners Inc., owed $40 million on a third lien. Inaddition to Sun's debt and $25 million on a second lien owing toCrystal Financial LLC, there is a $25 million first-lien revolvingcredit owing to CIT Healthcare LLC as agent. Crystal is providing$10 million in financing for bankruptcy.

SHUANEY IRREVOCABLE: Mark Freund Withdraws as Counsel-----------------------------------------------------The U.S. Bankruptcy Court for the Northern District of Floridaauthorized Mark Freund to withdraw as counsel for ShuaneyIrrevocable Trust. That order was entered May 24. A review ofthe docket indicates the Debtor has not filed an application tohire new counsel. According to the case docket, the Debtor isrepresenting itself.

SPRINT NEXTEL: Preliminary Results of Cash and Stock Elections--------------------------------------------------------------Sprint Nextel Corporation and SoftBank Corp. announced thepreliminary results of elections made by Sprint shareholdersregarding their preferences as to the form of merger considerationthey will receive in connection with the pending transactionbetween Sprint and SoftBank. The deadline for Sprint shareholdersto have made elections in connection with the transaction was 5:00p.m., New York time, on July 5, 2013.

Of the 3,026,063,027 shares of Sprint common stock outstanding asof July 5, 2013, holders of:

* 79,708,999 shares, or approximately 3 percent of outstanding shares, elected to receive shares of Sprint Corporation common stock;

* 1,607,839,145 shares, or approximately 53 percent of outstanding shares, elected to receive cash; and

* 1,338,514,883 shares, or approximately 44 percent of outstanding shares, made no election and therefore will be deemed to have elected to receive cash.

The allocation of the merger consideration will be computed usingthe formula set forth in that certain Agreement and Plan ofMerger, dated as of Oct. 15, 2012, as subsequently amended, by andamong Sprint, SoftBank and its direct and indirect wholly ownedsubsidiaries, Starburst I, Inc., Starburst II, Inc., and StarburstIII, Inc.

Elections to receive cash or stock consideration made by Sprintshareholders are subject to proration. Proration is required ifeither the available cash consideration ($16,640,000,000) or theavailable New Sprint common stock consideration is oversubscribed.As a result of the elections, the available cash consideration hasbeen oversubscribed. Accordingly, each share of Sprint commonstock for which a stock election was made will be converted intothe right to receive one share of New Sprint common stock, andeach share of Sprint common stock for which a cash election (or noelection) was made will be converted into the right to receive acombination of cash and shares of New Sprint common stock.

Based on the number of shares of Sprint common stock outstandingas of July 5, 2013, each share of Sprint common stock for which acash election (or no election) was made will be converted into theright to receive approximately $5.647658 in cash and 0.26174408shares of New Sprint common stock (subject to adjustment based onchanges in the number of outstanding shares of Sprint common stockbetween July 5 and the closing of the merger).

Sprint and SoftBank currently expect to close the merger onJuly 10, 2013, effective after the close of trading that day.

About Sprint Nextel

Overland Park, Kan.-based Sprint Nextel Corp. (NYSE: S)-- http://www.sprint.com/-- is a communications company offering a comprehensive range of wireless and wireline communicationsproducts and services that are designed to meet the needs ofindividual consumers, businesses, government subscribers andresellers.

Sprint Nextel incurred a net loss of $4.32 million in 2012, a netloss of $2.89 million in 2011, and a net loss of $3.46 million in2010. The Company's balance sheet at March 31, 2013, showed$50.75 billion in total assets, $44.28 billion in totalliabilities, and $6.47 billion in total shareholders' equity.

Bankruptcy Warning

"If the Merger Agreement terminates and we are unable to raisesufficient additional capital to fulfill our funding needs in atimely manner, or we fail to generate sufficient additionalrevenue from our wholesale and retail businesses to meet ourobligations beyond the next twelve months, our business prospects,financial condition and results of operations will likely bematerially and adversely affected, substantial doubt may ariseabout our ability to continue as a going concern and we will beforced to consider all available alternatives, including afinancial restructuring, which could include seeking protectionunder the provisions of the United States Bankruptcy Code," theCompany said in its annual report for the period ended Dec. 31,2012.

On Dec. 17, 2012, the Company entered into an agreement and planof merger pursuant to which Sprint agreed to acquire all of theoutstanding shares of Clearwire Corporation Class A and Class Bcommon stock not currently owned by Sprint, SOFTBANK CORP., whichor their affiliates. At the closing, the outstanding shares ofcommon stock will be canceled and converted automatically into theright to receive $2.97 per share in cash, without interest.

* * *

As reported by the TCR on Oct. 17, 2012, Standard & Poor's RatingsServices said its ratings on Overland Park, Kan.-based wirelesscarrier Sprint Nextel Corp., including the 'B+' corporate creditrating, remain on CreditWatch. "The CreditWatch update followsthe announcement that Sprint Nextel has agreed to sell a majoritystake to Softbank," said Standard & Poor's credit analyst AllynArden.

In the Oct. 17, 2012, edition of the TCR, Moody's InvestorsService has placed all the ratings of Sprint Nextel, including itsB1 Corporate Family Rating, on review for upgrade following theannouncement that the Company has entered into a series ofdefinitive agreements with SOFTBANK CORP.

As reported by the TCR on Aug. 8, 2012, Fitch Ratings affirms,among other things, the Issuer default rating (IDR) of SprintNextel and its subsidiaries at 'B+'. The ratings for Sprintreflect the ongoing execution risk both operationally andfinancially regarding several key initiatives that the companyexpects will improve cash generation, network performance andlonger-term profitability.

STX PAN OCEAN: Given Preliminary Chapter 15 Relief--------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that STX Pan Ocean Co., the largest commodities carrier inSouth Korea, filed a petition for Chapter 15 protection on June 20and last week won preliminary sanctuary from creditor actions inthe U.S.

According to the report, there will be a hearing in U.S.Bankruptcy Court in New York on July 10 for final recognition ofthe court in Korea as having primary responsibility for STX'sbankruptcy. If approved, creditor actions in the U.S. will behalted permanently, and the Korean court will be responsible forcollecting assets, reorganizing the company and makingdistributions to creditors.

The report notes that until then, the bankruptcy judge barredcreditors from taking action in the U.S. against STX or itsassets. Any vessels arrested in the U.S. will remain underseizure unless STX pays whatever is necessary to satisfy theunpaid debt.

The report discloses that in the Korean proceedings, the intentionis for creditors to exchange debt for stock, according to ChoByoung Hee, an analyst at Kiwoom Securities Co. in Seoul.Attachments to the petition listed assets of 6.88 trillion won($5.59 billion) and debt totaling 5.01 trillion won.

About STX Pan Ocean

STX Pan Ocean Co. Ltd., the largest commodities carrier in SouthKorea, filed a petition in New York on June 20, 2013, forprotection from creditors under Chapter 15 (Bankr. S.D.N.Y.Case No. 13-12046).

The Debtor is seeking recognition of the company's bankruptcyrehabilitation begun on June 7 in a court in Seoul. The petitionwas signed by You Sik Kim and Chun Il Yu, as the Seoul courtappointed administrators of STX. Blank Rome LLP serves as U.S.counsel for the administrators. The bankruptcy was the result ofa decision by Korea Development Bank, the largest creditor andsecond-biggest shareholder, not to buy the company.

According to the report, previously, Synagro intended to sell thebusiness outright to EQT and not in conjunction with a plan. EQTwas under contract to buy the business for an increased price of$460 million to resolve an objection to sale procedures raised byAmerican Securities Opportunities Advisors LLC, one of thecompany's senior and junior lenders. The new contract where EQTwill assume stock ownership through the plan is valued at $480million, including $465 million in cash.

There will be a hearing on July 18 in U.S. Bankruptcy Court inDelaware for approval of the disclosure statement. By acquiringSynagro's stock rather than assets, EQT won't be required to runthe gauntlet of having contracts assigned, which in turn wouldallow objection to the transfers from the contracting parties.The $316 million in first-lien debt will be paid in full in cash.Second-lien creditors, on account of their $45 million securedclaim, will recover about 95 percent. Trade suppliers with asmuch as $16 million in claims will be paid in full.

The report relates that general unsecured creditors are beingoffered a $50,000 cash pot and a sharing in proceeds fromlawsuits, for a recovery of as much as 10 percent. Second-liencreditors will share in lawsuit recoveries on account of theirdeficiency claims.

About Synagro

Synagro Technologies, Inc., based in Houston, Texas, is therecycler of bio-solids and other organic residuals in the U.S. andis one of the largest national companies focused exclusivity onbiosolids recycling, which has a market size of $2 billion. TheCompany was formed in 1986, under the name RPM Marketing, Inc.Synagro's corporate headquarters is currently located in Houston,Texas but is in the process of being transferred to White Marsh,Maryland. The Company also has offices in Lansdale, Pennsylvania,Rayne, Louisiana, and Watertown, Connecticut.

Synagro was owned by The Carlyle Group at the time of thebankruptcy filing. It was acquired in April 2007 by Carlyle in a$741 million transaction.

Synagro is being advised by the law firm of Skadden Arps SlateMeagher & Flom, along with financial adviser AlixPartners andinvestment bankers Evercore Partners. Kurtzman Carson &Consultants serves as notice and claims agent.

TAKEHIKO MURAKAMI: Japanese Insolvency Proceeding Recognized in US------------------------------------------------------------------The District Court of Guam recognized the Japanese insolvencyproceeding of Takehiko Murakami pending in Tokyo as a "foreignmain" proceeding pursuant to Section 1517 of the Bankruptcy Code.The case is pending in the Tokyo District Court.

Shin Ueda is the duly appointed bankruptcy trustee in the Japaneseinsolvency proceeding.

In a June 5 order, the Guam Court held that the foreignrepresentative is authorized to seek the relief provided for in11 U.S.C. Section 1519, 1520 and 1521, including but not limitedto taking title to and conveying any and all property owned byMurakami and located in the United States, and for such other andfurther relief provided for in Chapter 15 of the Bankruptcy Code.

The Court also entered a separate order dismissing, withoutprejudice, the Debtor's Chapter 11 case.

As previously reported by The Troubled Company Reporter, the Courtin February entered an order denying, without prejudice, themotion filed by the Trust seeking dismissal of the Debtor'sChapter 11 case. The Court ordered, among other things, that theDebtor must have a plan of reorganization confirmed on or beforeApril 19, 2013, which was extended until June 13, 2013. The Courtalso ordered that if the Debtor fails to confirm a plan ofreorganization on or before the deadline, the Debtor's bankruptcycase will be dismissed, with prejudice to re-filing for 180 days.

Eric Liepins, Esq., at Eric Liepins, P.C., in Dallas, Texas,serves as attorney for the Debtor.

The Debtor owns a 200-unit apartment in Holland, Ohio known asQuail Hollow at the Lakes.

According to the Troubled Company Reporter's records, TCICourtyard previously filed a Chapter 11 petition (Bankr. N.D. Tex.Case No. 11-34977) on Aug. 1, 2011. The Liepins firm also servedas counsel in the previous case. The Debtor estimated assets ofup to $10 million and debts of up to $50 million in the 2011petition.

TPO HESS: Holdings Inc. Files Schedules of Assets and Liabilities-----------------------------------------------------------------TPO Hess Holdings, Inc. filed with the U.S. Bankruptcy Court forthe District of Delaware its schedules of assets and liabilities,disclosing:

D.B. Hess was founded 1797 in Woodstock, Illinois. D.B. Hess andits affiliates are now leading provider of print, relatedservices, and technology. Hess ranks among the top 50 U.S.printers and has become one of the industry's most respected low-to-medium volume producers of commercial and educationalmaterials. Hess Holdings, the ultimate parent, was formed afterWellspring Capital Management LLC and certain co-investorsacquired D.B. Hess and The Press of Ohio in 2006.

TPO HESS: Intermediate Holdings I Files Schedules-------------------------------------------------TPO Hess Intermediate Holdings I, Inc. filed with the U.S.Bankruptcy Court for the District of Delaware its schedules ofassets and liabilities, disclosing:

D.B. Hess was founded 1797 in Woodstock, Illinois. D.B. Hess andits affiliates are now leading provider of print, relatedservices, and technology. Hess ranks among the top 50 U.S.printers and has become one of the industry's most respected low-to-medium volume producers of commercial and educationalmaterials. Hess Holdings, the ultimate parent, was formed afterWellspring Capital Management LLC and certain co-investorsacquired D.B. Hess and The Press of Ohio in 2006.

D.B. Hess was founded 1797 in Woodstock, Illinois. D.B. Hess andits affiliates are now leading provider of print, relatedservices, and technology. Hess ranks among the top 50 U.S.printers and has become one of the industry's most respected low-to-medium volume producers of commercial and educationalmaterials. Hess Holdings, the ultimate parent, was formed afterWellspring Capital Management LLC and certain co-investorsacquired D.B. Hess and The Press of Ohio in 2006.

TRIAD GUARANTY: Files Schedules of Assets and Liabilities---------------------------------------------------------Triad Guaranty Inc. filed with the U.S. Bankruptcy Court for theDistrict of Delaware its schedules of assets and liabilities,disclosing:

Winston-Salem, N.C-based Triad Guaranty Inc. (OTC BB: TGIC)-- http://www.triadguaranty.com/-- is a holding company that historically provided private mortgage insurance coverage in theUnited States through its wholly-owned subsidiary, Triad GuarantyInsurance Corporation. TGIC is a nationwide mortgage insurerpursuing a run-off of its existing in-force book of business.

In December 2012, the Company's mortgage insurer subsidiary, TriadGuaranty Insurance Corporation, was placed into rehabilitation,whereby the Illinois Department of Insurance was vested withpossession and control over all of TGIC's assets and operations.

On May 30, 2013, the magistrate judge for the U.S. District Courtof the Middle District of North Carolina issued an order denyingthe Company's motion to dismiss a class action lawsuit against thecompany and two of its former officers. Shareholders filed theclass action suit in 2009, claiming the company misled investorsabout poor financial results caused by improper underwritingprocedures.

Triad Guaranty Inc. filed a Chapter 11 petition (Bankr. D. Del.Case No. 13-11452) on June 3, 2013. The Company estimated assetsof at least $100 million and liabilities of less than $50,000.Attorneys at Womble Carlyle Sandridge & Rice, LLP, serve ascounsel to the Debtor.

The Debtor said in court filings that it has no significantoperating activities, and has limited remaining cash and otherassets on hand. The Debtor has been exploring various strategicalternatives, and will continue to do so from and after thePetition Date.

The Debtor said that expenses primarily consist of legal fees,fees paid to its board, annual premiums for directors' andofficers' liability insurance and general operating expenses. Theexpenses range from $100,000 to $500,000 per quarter. Unless theexpenses are reduced, the Debtor expects to deplete all of itsremaining cash by the end of 2013 or earlier.

TYCO INTERNATIONAL: Moody's Ratings Unaffected by IRS Def. Notice-----------------------------------------------------------------The IRS's claim against Tyco International Ltd. and formersubsidiaries Covidien plc. and TE Connectivity Ltd will have noimmediate effect on the companies' ratings, Moody's Investors'Service says in a new report, "Recent Tyco Legacy TaxDevelopments." Nonetheless, the potential for a sizable payment inthe future looms over the three firms, and could limit theirfinancial flexibility.

The IRS's recent notice of deficiency outlines $1.067 billion inpotential liabilities related to 1997-2000 (before any applicableinterest, which could be sizable). Although the companies hadagreed to share prior tax liabilities before their separation in2007, each is liable for the whole in the event that the othersdefault. Tyco has contested the claim.

"Each of the entities has anticipated a sizable settlement withthe IRS and believes it has established sufficient reserves," saysVice President -- Senior Analyst, Matthew Jones. "In addition, theissue could take several years to resolve, giving the companiesample time to adjust their liquidity, if necessary, to finance anysettlement."

While the amounts of any final settlements remain unknown, if thecompanies' reserve estimates or the IRS claims are treated asdebt, Moody's analysis shows that the companies' credit metricswould be moderately impaired by potential tax liabilities.

Nonetheless, pre-separation legal and tax contingencies have beena rating consideration since the 2007 separation was firstproposed, Jones says. So although a large settlement couldestablish negative ratings pressure if a company did not plan forthe contingency, there is no current effect on the companies'ratings. If the settlements were paired with debt-fundedacquisitions or share repurchases, however, negative ratingspressure could develop.

In the event that all or part of the present claims are upheld,the principles established in the settlement could form the basisof claims for subsequent periods, Moody's notes. Along with anypenalties and interest, these could be substantially larger thanthose outlined in the recent 8Ks.

UNIFIED 2020: Files Schedules of Assets and Liabilities-------------------------------------------------------Unified 2020 Realty Partners, LP, filed with the U.S. BankruptcyCourt for the Northern District of Texas, Dallas Division, itsschedules of assets and liabilities, disclosing:

Unified 2020 Realty Partners, LP, filed a bare-bones petitionunder Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.13-32425) in its home-town in Dallas on May 6, 2013. The petitionwas signed by Edward Roush as president of general partner. TheDebtor disclosed $44.7 million in total assets and $31.6 millionin liabilities as of the Chapter 11 filing. The Debtor says itowns and leases infrastructure critical to telecommunicationscompanies and data center facilities. Judge Stacey G. Jerniganpresides over the Chapter 11 case.

UPH HOLDINGS: Brown Firm Approved to Handle Sales Tax Litigation----------------------------------------------------------------The U.S. Bankruptcy Court for the Western District of Texasauthorized UPH Holdings, Inc., et al., to employ The Brown FirmPLLC as special counsel.

The firm would provide the Debtors with legal representationrespecting ongoing litigation in regarding nonpayment of sales taxpending before the 261st Judicial District Court of Travis County,Texas. The Firm will coordinate its efforts with Debtors' generalbankruptcy counsel to prevent any duplication of effort to thefullest extent possible, and thereby aid the Debtors ineffectuating a timely and cost effective reorganization.

The Debtors said the firm's employment is necessary andappropriate to facilitate the orderly administration of thebankruptcy estates.

The firm's customary fees and expenses incurred in connection withthis proposed representation are to be paid directly from theDebtors' estates.

To the best of the Debtors' knowledge, the firm does not hold anyinterest adverse to the Debtors or to the Debtors' bankruptcyestates.

Judy A. Robbins, the United States Trustee for Region 7, hasappointed a five-member Official Committee of Unsecured Creditorsin the Chapter 11 cases of UPH Holdings, Inc., Pac-West TelecommInc., and their affiliated debtors.

UPH HOLDINGS: Gets Final OK to Use Hercules Tech's Cash Collateral------------------------------------------------------------------The U.S. Bankruptcy Court for the Western District of Texasauthorized, on a second amended final order, UPH Holdings, Inc.,et al., to use cash collateral to continue their businessoperations without interruption.

As of the Petition Date, the Debtors owed Hercules Technology II,L.P., in the aggregate principal amount of not less than$10,531,673, plus accrued and unpaid interest, attorneys' fees,costs and expenses.

The Debtors would use the cash collateral to operate theirbusinesses. The Debtor's use of cash collateral will terminateupon the later of the effective date of any confirmed chapter 11Plan in the cases and 120 days from the date of entry of the finalorder, unless extended by a further order of the Court.

As adequate protection from any diminution in value of thelender's collateral, the Debtor will grant the lender adequateprotection liens on all owned or hereafter acquired property andassets of the Debtors of any kind or nature, subject to carve outon certain expenses.

Judy A. Robbins, the United States Trustee for Region 7, hasappointed a five-member Official Committee of Unsecured Creditorsin the Chapter 11 cases of UPH Holdings, Inc., Pac-West TelecommInc., and their affiliated debtors.

UPH HOLDINGS: Jackson Walker Approved as Bankruptcy Counsel-----------------------------------------------------------The U.S. Bankruptcy Court for the Western District of Texasauthorized UPH Holdings, Inc., et al., to employ Jackson WalkerL.L.P. as counsel.

The firm received a consultation retainer of $50,000 on March 21,2013, and a pre-filing retainer of $150,000 for services performedand to be performed in connection with and in contemplation of thefiling of the case.

Judy A. Robbins, the United States Trustee for Region 7, hasappointed a five-member Official Committee of Unsecured Creditorsin the Chapter 11 cases of UPH Holdings, Inc., Pac-West TelecommInc., and their affiliated debtors.

a) prepare an offering presentation or other suitable offering materials for use in informing prospective purchasers about the Debtors;

b) advise and assist the Debtors in preparation of a presentation which will be given by management to selected qualified prospective purchasers; and

c) develop a plan for marketing the Debtors' businesses including the identification of and communication with potential qualified purchasers.

Q Advisors will be paid as:

a) a monthly fee of $20,000 for the first three months of the engagement;

b) such fee to reduce to $15,000 per month thereafter;

c) a transaction fee in the amount equal to 2.75 percent of a sale/value of up to $12 million dollars; and

d) 5.5 percent of the sale/value of greater than $12 million.

In the event that the Telecom Sale transaction is consummated,100 percent of the monthly fees paid will be credited against thetransaction fees. In addition, Q Advisors is entitled to a minimumcumulative Sales Fee of $375,000.

To the best of the Debtors' knowledge, Q Advisors is a"disinterested person" as that term is defined in Section 101(14)of the Bankruptcy Code.

Judy A. Robbins, the United States Trustee for Region 7, hasappointed a five-member Official Committee of Unsecured Creditorsin the Chapter 11 cases of UPH Holdings, Inc., Pac-West TelecommInc., and their affiliated debtors.

VERASUN ENERGY: Court Tosses Clawback Suit Against West Plains--------------------------------------------------------------Bankruptcy Judge Brendan Linehan Shannon granted the request ofWest Plains Company to dismiss a lawsuit initiated by reorganizedVeraSun Energy Corporation. West Plains argues that the Courtlacks subject matter jurisdiction over this non-core proceedingand does not have personal jurisdiction over the Defendant.

The Reorganized Debtors initiated the adversary action againstWest Plains to recover prepetition debts allegedly owed to theDebtors. Specifically, the Plaintiffs seek to recover $991,720plus interest and costs from West Plains which the Plaintiffsallege West Plains has failed to remit. The Complaint allegesthat the amount owed is a matured debt, and West Plains' failureto pay constitutes a breach of contract. The Debtors also seekturnover of the amounts owed.

West Plains moves to dismiss the Complaint in its entiretypursuant to Fed R. Bank. P. 7012 and Fed. R. Civ. P. 12(b), oralternatively, to transfer pursuant to 28 U.S.C. Sections 1404(a)and 1412, to a more convenient forum, specifically the U.S.District Court for the District of Nebraska.

Headquartered in Sioux Falls, South Dakota, VeraSun Energy Corp.-- http://www.verasun.com/or http://www.VE85.com/-- produced and marketed ethanol and distillers grains. Founded in 2001, thecompany had a fleet of 16 production facilities in eight states,with 14 in operation.

The Company and certain affiliates filed for Chapter 11 protectionon Oct. 31, 2008 (Bankr. D. Del. Lead Case No. 08-12606). Mark S.Chehi, Esq., at Skadden Arps Slate Meagher & Flom LLP, representedthe Debtors in their restructuring efforts. AlixPartners LLPserved as their restructuring advisor. Rothschild Inc. served astheir investment banker and Sitrick & Company as theircommunication agent. Kurtzman Carson Consultants LLC served asclaims, noticing and balloting agent. The Debtors' total assetsas of June 30, 2008, was $3,452,985,000 and their total debts asof June 30, 2008, was $1,913,214,000.

On April 1, 2009, VeraSun closed the sale of substantially all ofits assets to Valero Renewable Fuels, a subsidiary of ValeroEnergy Corporation, North America's largest petroleum refiner andmarketer. Valero paid $350 million for the ethanol productionfacilities in Aurora, Fort Dodge, Charles City, Hartley andWelcome, in addition to the Reynolds site. Valero alsosuccessfully bid $72 million for the Albert City facility and$55 million for the Albion facility.

VeraSun also completed on April 9, 2009, the sale to AgStarFinancial Services PCA of substantially all of the assets relatingto the company's production facilities in Dyersville, Iowa;Hankinson, North Dakota; Janesville, Minnesota; Central City andOrd, Nebraska; and Woodbury, Michigan. AgStar released the USBESubsidiaries from their obligations under $319 million of existingindebtedness and assumed certain liabilities relating to theAgStar Facilities.

Judge Brendan L. Shannon of the U.S. Bankruptcy Court for theDistrict of Delaware confirmed on Oct. 23, 2009, the Chapter 11Plan of Liquidation filed by VeraSun and its affiliates.

VTE PHILADELPHIA: U.S. Bank Wins Dismissal of Case--------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkdismissed the Chapter 11 case of VTE Philadelphia, LP, at thebehest of U.S. Bank National Association.

The Bank renewed its motion for an order lifting or modifying theautomatic stay in the Debtor's case, or in the alternative,dismissing the Debtor's case.

As reported by the Troubled Company Reporter on May 17, 2013, theCourt provisionally denied U.S. Bank's motion for relief ofautomatic stay. The Court said U.S. Bank may renew the motionupon (i) any failure of the Debtor to timely pay all taxes on theproperty, as and when due, and particularly if U.S. Bank decidesto protect its position by paying the taxes; and (ii) upon anyfailure of the Debtor to file a plan of reorganization, which hasa reasonable possibility of a successful reorganization within areasonable time, by June 17.

The Debtor had asked the Court to deny U.S. Bank's motion for stayrelief or case dismissal. In court papers filed March 12, theDebtor said that, to keep the automatic stay in place to allowadditional time to reorganize, it is prepared to pay U.S. Bankmonthly interest payments at the applicable non-default contractrate of interest on the value of U.S. Bank's interest in theproperty.

As additional adequate security, the Debtor obtained untilDec. 20, 2013, commercial general liability insurance on theproperty in the amount of $2,000,000.

The Chapter 11 petition was filed on the eve of a sheriff's salescheduled by the secured creditor, U.S. Bank National Association,which has obtained judgment for foreclosure from the Court ofCommon Please of Philadelphia County. The judgment amount owed tothe bank is $16.9 million.

WILLBROS GROUP: Launches Refinancing of Outstanding Term Loan-------------------------------------------------------------Willbros Group, Inc., on July 8 disclosed that it will pursue arefinancing of its outstanding term loan and revolving creditfacilities. The Company expects the refinancing to enable it toborrow new funds at a lower interest rate, to extend the maturityof its debt to 2018 and to increase its flexibility under its loancovenants.

The Company is seeking to arrange a $250 million, six-year seniorsecured term loan credit facility. The Company intends to use thenet proceeds from the new term loan to repay all indebtednessunder the Company's existing credit facilities and for generalcorporate purposes. In addition to the new term loan, the Companyexpects to enter into a $150 million, five-year asset-basedrevolving credit facility. The revolver will be unfunded atclose.

J.P. Morgan Securities LLC will act as sole lead arranger andbookrunner for the new senior secured term loan. Bank of America,N.A. will act as sole administrative agent and collateral agentand Merrill Lynch, Pierce, Fenner & Smith Incorporated as solelead arranger and sole book manager for the $150 million asset-based revolving credit facility.

The Company believes it has identified the causes for and hascompleted the appropriate actions to contain the losses in itsregional oil and gas operations; however, it now expects anoperating loss from continuing operations on a consolidated basisin the second quarter 2013 to range from $4.0 million to $7.0million. Results from the regional delivery business are expectedto improve slightly in the second quarter relative to the$16.2 million operating loss generated by that business in thefirst quarter of 2013. The Company is making solid progress onmanagement and process improvements and believes that the recentchanges in the Oil & Gas and Regions' leadership, improvementsmade in our estimating process and project management, and theshort duration of the underperforming projects in the regionaldelivery business, which were essentially complete at June 30,2013, should return the business' project operations toprofitability in the short term. The Company continues toexercise patience and discipline with respect to the acquisitionof new work in the regions and in its cross-country pipelineconstruction business where multiple opportunities are stillavailable for execution in 2013. Aside from these two businessesin the Oil & Gas segment, the Company's remaining continuingoperations are currently performing to plan and are on track tomeet annual revenue and profit expectations. The Companycontinues to expect revenue for the full year 2013 to be in therange of $1.9 billion to $2.1 billion.

Our expected operating results for the second quarter 2013 arepreliminary estimates since we have not yet closed our books forthe second quarter. In addition, our independent registeredpublic accounting firm has not completed its review of our resultsfor the second quarter. Our actual results for the second quartermay differ materially from these estimates due to the completionof our final closing procedures, final adjustments and otherdevelopments that may arise between now and the time our resultsfor the second quarter are finalized.

The following unaudited tables are included to provide details onthe results we expect to report when we retrospectively adjust theperiods presented to give effect to the segment changes and thesale of Oman. To the extent this information is audited, ouraudited results, when reported, may differ materially from thisinformation.

Willbros -- http://www.willbros.com-- is a specialty energy infrastructure contractor serving the oil, gas, refining,petrochemical and power industries. The company's offeringsinclude engineering, procurement and construction (eitherindividually or as an integrated EPC service offering),turnarounds, maintenance, facilities development and operationsservices.

WILLBROS GROUP: New $250MM Term Loan Gets Moody's Caa1 Rating-------------------------------------------------------------Moody's Investors Service changed Willbros outlook to stable fromnegative and raised its speculative grade liquidity rating to SGL-3 from SGL-4 to reflect the improved liquidity and debt maturityprofile that is expected to result from the company's proposedrefinancing of its revolving credit facility and term loan.

Moody's assigned a B1 rating to the company's proposed $150million asset-based revolving credit facility and a Caa1 rating toits proposed $250 million term loan B. Moody's affirmed WillbrosB3 corporate family rating and raised the company's probability ofdefault rating to PD-B3 from PD-Caa1 since the company will nolonger have only first lien debt.

The following ratings were assigned:

$150 million asset-based revolving credit facility B1 (LGD 2, 24%);

$250 million term loan Caa1 (LGD 4, 63%);

Ratings Rationale:

Willbros' B3 corporate family rating reflects its small size, poormargins, weak short-term backlog, exposure to highly competitiveand cyclical end markets and track record of inconsistent projectexecution. The company continues to struggle to generateconsistent profitability and has very weak EBITA margins due tothe competitive nature of the engineering and constructionindustry, periodic execution and productivity issues and itsinability to effectively execute its growth strategy. As a result,the company's EBITA margins have ranged from 0.4% to 4.0% over thepast four years.

Willbros rating is supported by its moderate leverage, segmentdiversity, exposure to end markets with positive long-termprospects and the significantly improved debt maturity andliquidity profile that is expected to result from the proposedrefinancing. The proposed $150 million asset-based revolvingcredit facility due 2018 and the $250 million term loan due 2019will replace the company's current revolver and term loan. Thecompany's current revolver stepped down to $115 million from $175million on July 1, 2013 and the revolver and the existing $189million term loan both have a maturity date of June 30, 2014.Therefore, the company will be extending its closest debt maturityby four years and significantly improving its liquidity position.The company had $58 million of liquidity consisting of about $10million in cash and $48 million of borrowing availability at March31, 2013. Willbros is expected to have pro forma liquidity ofapproximately $150 million including about $50 million in cash andapproximately $100 million of availability on the new revolver.The improved pro forma liquidity was the catalyst for the changein the speculative grade liquidity rating to SGL-3.

The new revolver will have a first priority security interest inall assets except real property, machinery and equipment and asecond priority lien on those assets. The revolver is rated B1,two notches above the corporate family rating due to its firstpriority lien on the more liquid and sizeable receivables ($389million at 3/31/13) of the company. The term loan B will have afirst priority lien on all assets not included in the ABL revolverborrowing base and a second priority lien on the ABL collateral.The term loan is rated Caa1 due to its second lien status on thecompany's receivables and the low level of net property plant andequipment ($120 million at 3/31/13) that provide the firstpriority collateral for the term loan.

Pro forma including the proposed refinancing, Willbros leverageratio (Debt/EBITDA) will be approximately 3.5x and its interestcoverage ratio (EBITA/Interest) about 1.5x on a Moody's adjustedbasis. Moody's expects the company to produce relatively stableoperating results over the next 12 to 18 months as losses in theoil & gas segment related to the company's regional growthstrategy are offset by improved profitability in the company'sother segments driven by gradually improving end market demand.This should result in EBITA staying relatively flat with itstrailing twelve month level of about $60 million on a Moody'sadjusted basis. If the company can maintain this level ofprofitability and complete the sale of its Hawkeye subsidiary,then its leverage and interest coverage ratios should remainrelatively stable. Therefore, the company will continue to have amoderate amount of leverage and ample interest coverage for itsrating category. However, Moody's believes there could be downsiderisk to its projection based on the company's history ofaggressive bidding and inconsistent project execution and sincethe company has a relatively low short term backlog of orders.

Willbros stable outlook presumes it will complete the proposedrefinancing. It also assumes the company's operating results willremain stable over the next 12 to 18 months and result in stablecredit metrics. It also assumes the company will carefully balanceits leverage with its growth strategy.

Downward rating action could occur if Willbros is unable tocomplete the proposed refinancing in a timely manner, liquidity isreduced or the company does not maintain compliance with its bankcovenants. Downward rating pressure could also develop if thecompany sustained its adjusted leverage above 5.5x or its interestcoverage below 1.0x.

The principal methodology used in this rating was the GlobalConstruction Industry Methodology published in November 2010.Other methodologies used include Loss Given Default forSpeculative-Grade Non-Financial Companies in the U.S., Canada andEMEA published in June 2009.

Willbros United States Holdings, Inc. is a wholly-owned subsidiaryof publicly traded Willbros Group, Inc. and is headquartered inHouston, Texas. The company provides engineering and construction(E&C) services to the oil, gas and power industries primarily inNorth America. Willbros reports its results in three segments: Oil& Gas (63% of revenues; 27% of backlog) is focused on the U.S.market and specializes in pipelines and associated facilities andprovides maintenance and turnaround services for refineries;Utility T&D (26%; 57%) provides end-to-end infrastructureconstruction services, primarily for the electric and natural gasutility end-markets; and Canada (11%; 16%) provides E&C servicesto the oil sands industry. Willbros' revenue for the 12 monthsending March 31, 2013 was $2.1 billion and its backlog totaled$2.0 billion, of which $880 million was expected to be realizedover the next twelve months. Approximately 80% of Willbros'backlog is in the US and 20% in Canada.

WILLBROS GROUP: S&P Rates $250MM Sr. Secured Loan 'B-'------------------------------------------------------Standard & Poor's Ratings Services assigned its 'B-' issue ratingand '4' recovery rating to Houston-based engineering andconstruction company Willbros Group Inc.'s proposed$250 million senior secured term loan due 2019. Willbros GroupInc. is the borrower. The '4' recovery rating indicates S&P'sexpectation of average (30%-50%) recovery in the event of apayment default. The company has indicated that it will use thenet proceeds from the proposed term loan to repay all of itsexisting debt.

Upon completion of the proposed refinancing plan, S&P intends torevise its outlook to stable because the extant negative outlookreflects its view that the company's upcoming maturities are asubstantial risk, and the proposed financing would address thisrisk.

Worldwide Energy & Manufacturing USA, Inc., headquartered in SouthSan Francisco, California with manufacturing facilities in China,is a manufacturer of photovoltaic (PV) solar modules under the'Amerisolar' brand. Founded in 1993, the Company sells itsproducts primarily to clients in Europe, North America and Asia.The Company also operates several subsidiaries in the People'sRepublic of China (PRC) that provide mechanical, electronic andfiber optic products manufacturing. For more information aboutWorldwide Energy & Manufacturing USA, please visit its Web site athttp://www.wwmusa.com.

At the time the petition was filed, a non-judicial foreclosuresale of the Property was scheduled for Feb. 1, 2013. Theforeclosure sale was postponed due to YBA's bankruptcy filing.

In the schedules, YBA stated that IndyMac had a secured claim onthe Property of $3,810,518.

On April 10, 2013, IndyMac filed a Motion for Relief fromAutomatic Stay. IndyMac stated that relief should be grantedbecause IndyMac's interest in the Property is not adequatelyprotected; YBA has no equity in the Property; "Debtor's failure toabate water intrusion results in continuing damage to collateral";and "[b]ad faith filing arising from unauthorized prepetitiontransfers of property into single purpose entity."

YBA Nineteen LLC, a California LLC, based in La Jolla, filed thechapter 11 bankruptcy petition (Bankr. S.D. Calif. 13-00968) inSan Diego, on Jan. 31, 2013. John L. Smaha, Esq., at Smaha LawGroup, APC, serves as the Debtor's counsel. In its petition, theDebtor scheduled assets of $4,005,849 and liabilities of$6,910,436. The Company's list of its 10 largest unsecuredcreditors filed with the petition is available for free at:http://bankrupt.com/misc/casb13-00968.pdf The petition was signed by Kamran Banayan, manager.

According to the report, under the settlement greenlighted by U.S.Bankruptcy Judge Thomas Holman, Zacky Farms will pay Foster Farmsan administrative claim of more than $1.2 million. Foster willalso receive an additional unsecured claim of $937,396, the reportadded.

* Fitch Sees Stable Outlook For N. American Thermal Projects-------------------------------------------------------------The Outlook for North American thermal power and oil & gasinfrastructure projects is Stable, with a mixed outlook forrenewable energy projects according to Fitch Ratings, which isconducting a mid-year review of its sector outlooks.

Approximately 84% of current North American energy project RatingOutlooks are Stable or Positive and reflect mostly contractedrevenue streams mitigating price and volume risk. However,exposure to merchant market energy and fuel price risks increasescash flow uncertainty, in some cases resulting in NegativeOutlooks.

Fitch views the thermal power sector as Stable due to fixed-pricerevenue agreements in place for the majority of Fitch's thermalpower portfolio. Similarly, the Outlook for oil & gas projects isStable due to strong demand and prices.

The Outlook for the renewable energy sector has been revised toStable/Negative, reflecting a portfolio of projects that largelybenefits from long-term revenue contracts, but includes varyinglevels of exposure to market price risk.

Outlooks could change if energy price volatility decreases cashflows for projects exposed to market conditions, or conversely, ifcash flows improve due to increased market demand and higherenergy and natural gas prices. The impact of new and pendingenvironmental laws remains uncertain. Outlooks on certainrenewable energy projects could improve to Stable if recenttransmission congestion issues are mitigated by the systemsupgrades currently underway.

* Moody's: Life Insurers' Credit Losses Back to Historical Levels-----------------------------------------------------------------US life insurance companies' statutory investment credit losseshave continued to decline and have returned to historical norms,driven by the relatively benign credit market conditions, saysMoody's Investors Service in its new special comment "US LifeInsurers' Credit Losses Return to Long-Term Historical Levels in2012."

Overall investment credit losses in 2013 are expected to remain atsimilar levels as 2012, consistent with long-term historicalaverages (20-25 basis points (bps) of fixed income assets), saysMoody's. The new report analyzes the realized investment losses ofUS life insurers' bond and commercial mortgage loan (CML) holdingsin 2012 and over the past five years.

"Over the past few years, US life insurers' investment portfolioshave become less of a credit concern," says StefanKahandaliyanage, a Moody's Associate Analyst and co-author of thereport. "However, a number of factors could lead to greater lossesgoing forward, including fiscal tightening, weakness in Europe oremerging market regions that dampen economic growth here, a risein unemployment, or a reversal in the housing recovery."

Moody's notes that on a statutory basis, rated life insurancecompanies reported average pre-tax realized bond/preferred stockcredit losses in 2012 of 22 bps of fixed income invested assetscompared to 38 bps in 2011. Cumulative pre-tax realizedbond/preferred stock credit losses totaled about 3.5% of fixedincome invested assets over the period 2008-2012.

US life insurers reported pre-tax realized statutory investmentgains, including the decline in valuation reserve in 2012, of $136million on their CML portfolios compared to pre-tax realizedlosses of $26 million (1bp of CML book value outstanding) in 2011.Cumulative CML losses totaled about 134 bps of CML book value overthe period 2008-2012, relatively modest compared to previouscommercial real estate downturns, says Moody's.

* June Commercial Bankruptcies Fewest Since February 2007---------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that bankruptcies of all types in the U.S. during Junewere the second fewest this year. To find a month with fewerfilings other than January requires going back to February 2007.

According to the report, the 500 company reorganizations inChapter 11 begun in June were the fewest since November 2007.Commercial bankruptcies of all types are down even more. The3,500 business bankruptcies in June were the fewest since February2007 and represented a decline of 26 percent compared with June2012. The 83,500 business and personal bankruptcies of all typesin June bring the total for the first half of the year to about545,000, or 14 percent fewer than the same period in 2012,according to data compiled from court records by Epiq Systems Inc.

The report notes that filings this year have been up and downmonth by month. June filings were 17.3 percent fewer than May and19.5 percent less than June 2012. Filings are down so far thisyear in all 50 states. The June statistics represents a "newnormal of reduced bankruptcies," Sam Gerdano, the executivedirector of the American Bankruptcy Institute, said in astatement.

The report discloses that states with the most bankruptcies in Mayper capita were Tennessee, Georgia, and Alabama, the same as themonth before. Early this year Georgia replaced Alabama in secondplace.

Bankruptcies throughout the U.S. declined 14.1 percent in 2012,totaling 1,185,000. In 2011, there were 1,380,000. The 2011bankruptcies represented an 11.7 percent decline from the 1.56million in 2010, the most bankruptcies since the all-time recordof 2.1 million set in 2005. In the last two weeks before thebankruptcy laws tightened in 2005, 630,000 American soughtbankruptcy protection.

* LPS' May Mortgage Monitor Shows Record Drop in Delinquencies--------------------------------------------------------------The May Mortgage Monitor report released by Lender ProcessingServices found that the national delinquency rate continued tofall in May, marking the largest year-to-date drop since 2002.Delinquencies are down more than 15 percent since the end ofDecember 2012, coming in at 6.08 percent for the month. As LPSApplied Analytics Senior Vice President Herb Blecher explained,much of this improvement is supported by the fact that new problemloan rates are approaching the pre-crisis average.

"Though they are still approximately 1.4 times what they were, onaverage, during the 1995 to 2005 period, delinquencies have comedown significantly from their January 2010 peak," Mr. Blechersaid. "In large part, this is due to the continuing decline in newproblem loans -- as fewer problem loans are coming into thesystem, the existing inventories are working their way through thepipeline. New problem loan rates are now at just 0.73 percent,which is right about on par with the annual averages during 2005and 2006, and extremely close to the 0.55 percent average for the2000-2004 period preceding.

"As we've noted before," Mr. Blecher continued, "negative equityappears to still be one of the strongest drivers of new problemloans, and -- primarily buoyed by home price increases nationwide-- that situation also continues to improve. We looked once againat the number of 'underwater' loans in the U.S., and found thatthe total share of mortgages with LTVs of greater than 100 percenthad declined to just 7.3 million loans as of the end of the firstquarter of 2013. This accounts for less than 15 percent of allcurrently active loans and represents a nearly 50 percent year-over-year decline."

Though recent volatility in mortgage loan interest rates are notyet reflected in the data, the Mortgage Monitor did show that 2013origination activity remained strong through April, with thatmonth's 835,000 new loans representing a 1.8 percent increase fromMarch and a 34.1 percent growth from the prior year. The May dataalso showed an increase in prepayment rates, indicating thatrefinance activity, and likely associated originations, remainedstrong despite that month's increased interest rates. LPS willcontinue to monitor the data to see what impact rate increases mayhave on originations in the months to come.

*Non-current totals combine foreclosures and delinquencies as apercent of active loans in that state. Totals are extrapolatedbased on LPS Applied Analytics' loan-level database of mortgageassets.

About Lender Processing Services

Lender Processing Services -- http://www.lpsvcs.com-- delivers comprehensive technology solutions and services, as well aspowerful data and analytics, to the nation's top mortgage lenders,servicers and investors. As a proven and trusted partner withdeep client relationships, LPS offers the only end-to-end suite ofsolutions that provides major U.S. banks and many federalgovernment agencies the technology and data needed to supportmortgage lending and servicing operations, meet unique regulatoryand compliance requirements and mitigate risk. These integratedsolutions support origination, servicing, portfolio retention anddefault servicing. LPS' servicing solutions include MSP, theindustry's leading loan-servicing platform. The company alsoprovides proprietary data and analytics for the mortgage, realestate and capital markets industries. LPS is a Fortune 1000company headquartered in Jacksonville, Fla., and employsapproximately 7,500 professionals.

* Local Rules Can't Allow Untimely Filing of Complaint------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the U.S. Court of Appeals in San Francisco ruled onJuly 2 that even a local rule can't give a bankruptcy courtdiscretion to allow the late filing of a complaint objecting tothe dischargeability of a debt owing by a bankrupt.

According to the report, the lawyer for a creditor began theprocess of filing a dischargeability complaint at 9:00 p.m. on thelast day for a timely filing. Due to "technical problems with thecounsel's computer," the filing wasn't completed until 30 minutesafter the midnight deadline. The bankruptcy court dismissed thecomplaint. On appeal, the district court ruled there was nodiscretion to grant a retroactive extension of the deadline.

The report relates that the Ninth Circuit upheld the lower courtsin an opinion by Circuit Judge Sidney R. Thomas. The mandatorylanguage of Bankruptcy Rule 4007(c) doesn't allow retroactivediscretion to allow a late filing, Judge Thomas said. Any requestfor an expansion of the deadline must be made before expiration,according to the language of the rule.

The report discloses that the erstwhile plaintiff pointed to alocal court rule saying that someone whose electronic filing "isuntimely or otherwise improper may seek appropriate relief fromthe bankruptcy court upon a showing of good cause or excusableneglect." Judge Thomas held that a local rule "cannot be appliedin a manner that conflicts with the federal rules."

* Feds Seek 2 Years In Prison For Ex-Kirkland Partner's Fraud-------------------------------------------------------------Kurt Orzeck of BankruptcyLaw360 reported that ex-Kirkland & EllisLLP bankruptcy partner Theodore L. Freedman should spend 24 to 30months in prison on tax fraud charges for not reporting $2.4million in income, the U.S. Department of Justice told a New Yorkfederal judge.

According to the report, Freedman, 65, pled guilty to four countsof tax fraud in March. He had previously planned to use Asperger'ssyndrome as a defense at trial to the charges on which he wasindicted in July 2011.

The case is USA v. Freedman, Case No. 1:11-cr-00599 (S.D.N.Y.).

* SAC's Cohen Said to Remain Under Investigation------------------------------------------------Patricia Hurtado & David Glovin, writing for Bloomberg News,reported that SAC Capital Advisors LP founder Steven Cohen willremain under federal investigation even if prosecutors miss a lateJuly deadline for charging him in the largest insider-trading casein history, a person familiar with the probe said.

According to the report, Martoma is accused of recommending thatSAC sell shares of two drug companies, based on an illegal insidetip he received.

The five-year statute of limitations deadline for prosecutors tobring charges against Cohen for a series of trades sparked byMartoma's tip expires July 29 at the latest, the report noted.Prosecutors have insufficient evidence against Cohen to charge himin that matter, WSJ said without identifying its sources.

Cohen, whose Stamford, Connecticut-based firm manages $15 billion,isn't out of the woods legally should Martoma not say he hasevidence against his former boss or investigators not findsomething incriminating by the end of the month, according to theperson, who asked not to be identified because of the confidentialnature of the investigation, the report related.

The Martoma case is U.S. v. Martoma, 12-cr-00973, U.S. DistrictCourt, Southern District of New York (Manhattan).

* Morgan Lewis Adds 8 Business & Restructuring Lawyers in Moscow----------------------------------------------------------------Morgan Lewis announced that a group of eight lawyers from theinternational law firm of Gide Loyrette Nouell will join itsBusiness and Finance Practice, resident in Moscow. The group isled by partners Grigory Marinichev -- the former head of theBanking and Finance and Restructuring Practices at Gide -- andKonstantin Kochetkov, a leading project finance lawyer. They willbe joined by six associates.

"Grigory and Konstantin's team of top-tier finance and corporatetransactional lawyers represent many large financial institutionsand corporate enterprises that are particularly active in Russiaand Europe," said Firm Chair Francis M. Milone. "The diversity oftheir practice and client base offers attractive synergies withour international presence and deep bench in related areas," headded.

Mr. Marinichev launched the Banking and Finance Practice at hisformer firm 10 years ago, and with Mr. Kochetkov, has built itinto a well-managed and high performing group. Mr. Marinichev'spractice focuses on structured finance and secured lending as wellas debt restructuring and insolvency matters for blue chipborrowers, Russian and European lenders and debtors undergoingliquidation or reorganization. He also counsels companies in avariety of industries including metals and mining,telecommunications, oil and gas, energy, and municipalinfrastructure.

"This team's arrival offers us an opportunity to establish one ofthe leading banking and finance practices in Russia and helps tobuild out the firm's global restructuring capabilities," notedCharles Engros, Leader of the Business and Finance Practice. "Theinnovative counsel that they provide on cross-border banking,lending and financing issues for companies in a number ofindustries will prove invaluable to our wide array of clients.Their practice also ties in well with our current emerging marketfinance practice in London and the new finance team to be based inDubai," he said.

"We have always been proud of our uncompromising approach torecruiting top talent in Moscow," said Oleg Berger, recruitingpartner for the Moscow office. "Grigory's and Konstantin's successin assembling one of the most respected finance teams in themarket and their reputation for unyielding client service isconsistent with our approach and complements our alreadyformidable team in a key practice area."The group joins a Business and Finance team that spans the UnitedStates, Europe, and Asia, with more than 350 transactional lawyerswho focus on a wide variety of areas, including finance,bankruptcy and restructuring, mergers and acquisitions, privateequity, and capital markets.

The Meetings, Conferences and Seminars column appears in theTroubled Company Reporter each Wednesday. Submissions viae-mail to conferences@bankrupt.com are encouraged.

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Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers"public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than $3 pershare in public markets. At first glance, this list may look likethe definitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filedChapter 11 cases involving less than $1,000,000 in assets andliabilities delivered to nation's bankruptcy courts. The listincludes links to freely downloadable images of these small-dollarpetitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book ofinterest to troubled company professionals. All titles areavailable at your local bookstore or through Amazon.com. Go tohttp://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday editionof the TCR.

The Sunday TCR delivers securitization rating news from the weekthen-ending.

For copies of court documents filed in the District of Delaware,please contact Vito at Parcels, Inc., at 302-658-9911. Forbankruptcy documents filed in cases pending outside the Districtof Delaware, contact Ken Troubh at Nationwide Research &Consulting at 207/791-2852.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding, electronicre-mailing and photocopying) is strictly prohibited without priorwritten permission of the publishers. Information containedherein is obtained from sources believed to be reliable, but isnot guaranteed.

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